MW Elizabeth Warren raises concerns over MrBeast's teen banking app - and its connection to a troubled bank
By Genna Contino
The senator questioned the app's connection to Evolve Bank & Trust, which has faced multiple setbacks
Sen. Elizabeth Warren has laid out her concerns about the YouTube star MrBeast's plans to run a fintech with a connection to a troubled bank and a history of marketing cryptocurrency investments to minors.
Sen. Elizabeth Warren is raising concerns about a popular YouTuber's recent venture into financial services with his acquisition of a banking app called Step and its connection to a bank with a troubled history.
Warren sent a letter to Jimmy Donaldson, better known as MrBeast, laying out concerns about Donaldson's fitness to run a fintech, the app's history of marketing cryptocurrency investments to minors and its connection to Evolve Bank & Trust, an institution that has faced scrutiny from regulators.
The Democrat from Massachusetts wrote in a 12-page letter released Monday that she was worried that the app had previously encouraged teens to make "risky investments."
Donaldson, who has 470 million subscribers on YouTube, acquired Step, a banking app for teens and young adults, in February. A spokesperson for Donaldson's company said Beast Industries aims to "improve the financial future of the next generation" and that it is examining Step's existing offerings and marketing approaches to ensure it follows applicable laws and regulations.
"We appreciate Senator Warren's outreach and look forward to engaging with her as we build the next phase of the Step financial platform," the spokesperson said in a statement. Warren's press office did not immediately respond to a request for comment.
Read more: MrBeast's finance app for kids is backed by a bank that's faced regulatory scrutiny and a fintech partner's failure
Warren asked in the letter why Step had chosen to partner with Evolve. Warren noted the disappearance of up to $96 million in customer funds from Evolve and other banks following the 2024 bankruptcy of Synapse Financial Technologies, a Federal Reserve enforcement action against Evolve and a data breach that likely exposed customers' sensitive information.
The letter comes a week after MarketWatch published an investigation into Step's connection to Evolve Bank & Trust, which provides the regulated banking services behind the app, including deposit accounts and credit-building cards, while the platform itself layers on features like cash advances and in-app rewards that pay users to play games or complete surveys. Evolve declined to comment for this article.
Evolve is known among consumer advocates for taking on risky open-banking partnerships with fintechs.
The bank also hired a CEO last August who was fired from his post three months later after being arrested on child-pornography charges.
A person familiar with Beast Industries' plans told MarketWatch earlier this month that the company is "evaluating alternative banking partners" now that the acquisition is complete.
Join Don't Short Yourself Live to ask MarketWatch's Beth Pinsker your Roth IRA questions on Wednesday, March 25, at 1:30 p.m. Eastern time.
-Genna Contino
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March 25, 2026 09:46 ET (13:46 GMT)
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