Sen. Elizabeth Warren sent a list of questions to Jimmy Donaldson, the YouTube personality known as MrBeast, on Monday following his acquisition of a financial services app targeted at children.
In the letter, Warren, who serves as the ranking member of the Senate Banking Committee, lays out almost a dozen questions about the intentions of the new financial services company acquired by the internet star and the internal mechanisms of his company. She did not accuse him of any wrongdoing.
“Beast Industries is primarily an entertainment and consumer product company — and any foray into financial services, particularly services aimed at children — must be done with great care and in compliance with the law,” Warren wrote in a 12-page inquiry.
Donaldson’s company, Beast Industries, is valued at over $5 billion and has exploded beyond the world of internet videos in recent years by expanding into a reality television contest on Amazon Prime Video, along with a slew of other merchandise ranging from chocolate bars to a mobile phone service to a thriller novel written alongside the author James Patterson.
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Late last year, the company announced that it had acquired the financial services app Step, which is targeted at teenagers and young adults and has parental supervision settings for users under 18 years old. In addition to offering its users a secured card to spend deposited funds, it also offers investment opportunities, including those in cryptocurrencies.
In the letter addressed to Donaldson, who has 472 million YouTube subscribers, and the chief executive officer of his company Beast Industries, Warren questions several features of the Step app — including a “script” for children to “convince their parents to invest in crypto” and previously failed mergers.
“Beast Industries Is Ill Prepared to Run a Financial Technology Company,” one of the letter’s headings reads. “While Beast Enterprises has quickly grown as a company and expanded into other offerings, it is unclear to me the extent to which the company’s corporate structure and policies have kept track with its commercial success.”
Warren also raises concerns that Donaldson “has been accused of unethical and potentially illegal behavior related to his dealings in cryptocurrencies,” referring to cryptocurrency insider-trading allegations.
In 2024, Donaldson was accused of using his platform to promote various cryptocurrency tokens only to ultimately sell his holdings once the profits had risen. He has denied the allegations, though allegations of insider trading date back to 2021.
In a statement to The New York Times on Monday, a spokesperson for Beast Industries said the company looked forward “to engaging” with Warren and that its business interests are primarily aimed at improving “the financial future of the next generation.”
“Now that we’ve completed the transaction and have ownership control, we’re examining all existing offerings and marketing approaches to ensure that Step’s future is developed thoughtfully and deliberately, meets our very high quality standards, and is in compliance with applicable laws and regulatory requirements,” the emailed statement said.
In a post to X in October, Donaldson described the acquisition as a mission to provide financial literacy.
“Nobody taught me about investing, building credit, or managing money when I was growing up,” he posted to X. “That’s exactly why we’re joining forces with Step! I want to give millions of young people the financial foundation I never had.”
In Monday’s letter, Warren outlined a series of questions about the company’s plans for the new venture. She argued that the acquisition could allow Donaldson to target his “primarily young and very loyal audience,” citing “Step’s history of highlighting volatile investments to teenagers.”
“Mr. Donaldson has consistently catered to his child and teenage audience with his other products and business lines,” Warren wrote. “Beast Industries’ corporate history raises concerns about its ability to manage a financial technology company, particularly one targeting children and teens.”
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