One of MrBeast's oldest friends quit working with him after allegations were made about her messaging a child.
This case may be difficult for him and prompt scrutiny of the unconventional way he runs his business.
Ava Tyson, well-known to Donaldson's audience as a childhood friend, has appeared in his videos since 2015.
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Tyson has been accused by several YouTubers of messaging a young fan when he was 13 and Tyson was 20.
In response, Donaldson said he was investigating the claims.
BI asked Donaldson and Tyson for further comment but did not receive a response.
Allegations of inappropriate behavior
A video by the creator Adrox, posted on July 16, gained over a million views and generated a wave of interest in her past.
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The new interest also shed new light on two videos posted by a creator called Prism42 about a month ago, who went into specific allegations about Tyson's relationship with a young fan.
Prism42 said Tyson made sexual comments in the course of an online friendship with this child.
They also accused Tyson of interacting with an artist called Shadman, who drew sexualized pictures of young girls.
After more YouTubers, including Acheeto and MorePegasus, made videos about the claims, Tyson said she would halt working with Donaldson and the MrBeast team.
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"I would like to apologize for any of my past behavior or comments if it hurt or offended anyone," Tyson wrote on X on July 23.
She didn't give specifics of what the behavior or comments were.
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"It was not my intent," Tyson wrote. "Seeing recent events we've mutually decided it's best I permanently step away from all things MrBeast and social media to focus on my family and mental health."
Tyson added she "never groomed anyone" and said any accusations were false.
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"Having said that, I humbly apologise to anyone I have hurt with my unacceptable social media posts, past actions, and to those who may feel betrayed by how I used to act online," she said.
MrBeast is investigating the claims
The fan in question, known by their online username LavaGS, is now 20. They denied that Tyson groomed them, referring in a series of X posts to the allegations as "massive lies."
"Ava never did anything wrong and just made a few edgy jokes," they said. "I was never exploited or taken advantage of."
Donaldson posted a statement on the night of July 24, saying he was "disgusted and opposed" to Tyson's behavior and had hired a third-party investigator.
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"That said, I've seen enough online and taken immediate action to remove Ava from the company, my channel, and any association with MrBeast," he said. "I do not condone or support any of the inappropriate actions."
He continued: "I will allow the independent investigators the necessary time to conduct a comprehensive investigation and will take any further actions based on their findings."
YouTuber-fan boundaries
Other top YouTubers have voiced concerns about the relationship and argued that interacting with underage fans in this way is wrong.
Valkyrae, a gaming YouTuber and streamer with 4 million subscribers, described the situation as "disappointing and disgusting."
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Pokimane, who has 6 million subscribers, said she didn't know all the details, but she wanted to make it clear that "any inappropriate behavior towards minors is unacceptable, regardless of who you are."
When YouTubers were a newer kind of celebrity, some crossed boundaries with fans. Infamously, Colleen Ballinger, known for her Miranda Sings character, faced allegations of grooming her young fanbase.
In response, she posted a widely condemned 10-minute musical apology, playing the ukulele.
Katya Varbanova, a social media consultant and the CEO of Viral Marketing Stars, told Business Insider that with any further statements, Donaldson should avoid making the same mistakes.
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"Ever since Miranda Sings and Ukulele Gate, the general public doesn't take grooming allegations of minors lightly," she said.
Brushing off controversy
In June, Donaldson overtook the channel of the Indian music label T-Series to snatch the title of the biggest YouTuber in the world.
He is also no stranger to controversy. He has fielded accusations of overseeing a toxic workplace and being a "white savior." His social experiments, in which he has people living in grocery stores or isolation chambers to win money, have also been likened to the horror series "Saw."
Donaldson hasn't personally responded to the claims about his workplace. But a spokesperson told Time that "safety is incredibly important and taken very seriously." They also said medics and "experienced professionals" were on set at all times.
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Donaldson's success hasn't been significantly tempered by the backlash, with the majority of his viewers seeing him as authentic and generous.
His support of Tyson has been a part of that. Tyson transitioned in 2023, and Donaldson has consistently shut down transphobic comments aimed at her and her family.
However, Donaldson, who aims to maintain a casual and fun workplace, may find that now is the time for more professionalism.
In a Time profile earlier this year, Donaldson said he doesn't like traditional job titles. Instead, he prefers to call his employees "friends of friends" or "FOFs."
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Experts warned at the time that he may come to regret not running a more conventional workplace.
Varbanova told BI that Donaldson may now consider different ways to present his team in the media.
"There are always risks of taking a more unconventional approach to business, especially during moments of PR crisis," she said.