In a shocking turn of events, a cryptocurrency developer has orchestrated a staggering $2 million rug pull fraud, wreaking havoc on the project’s investors. This unscrupulous individual, whose actions have left the community bewildered, posted a farewell note attributing the debacle to a debilitating online gambling addiction. Within a matter of minutes, the project’s valuation plummeted from $2 million to a mere $20,000, leaving investors devastated.
The incident unfolded during a liquidity migration event of the Encryption AI project, when the developer executed a rug pull, causing the project’s token, 0XENCRYPT, to nosedive from its trading price of approximately $2.05 to an all-time low of $0.02. The magnitude of this price collapse was recorded by the renowned token data aggregator CoinGecko, adding further weight to the severity of the incident.
What sets this particular rug pull apart from others is the developer’s unexpected decision to leave behind a letter addressed to the project’s community. On this note, the developer offered apologies for his reprehensible actions while attributing his gambling addiction as the primary catalyst for this calamitous move. To compound matters, the developer vanished into thin air, eradicating all traces of the project from social media platforms.
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Screenshots of the developer’s message swiftly circulated across various social media channels, eliciting a wave of anger and disappointment among community members. In the message, the developer shared personal accounts of his struggles with gambling, revealing losses totaling a staggering $300,000 incurred in online casinos. Though the developer made no guarantees of restitution or future project revival, he pledged to undertake every conceivable effort to improve himself.
This one hurts bad. #0xEncrypt dev just rugged hard on the migration.
Twitter also been deleted.
Played us all the way.
I feel sick.
Karma is coming for you, scumbag. pic.twitter.com/o2axnvFZFN
— GEMINHIGH (@Geminhighi) July 2, 2023
The rug pull incited a torrent of outrage within the community, with individuals expressing their desire for karmic retribution upon the developer. Some lamented the timing, dubbing it the worst birthday present ever, while others found the note’s length and content to be a bizarre conclusion to such a deceitful act. One Twitter user, known as Crypto Daddi, bemoaned losing approximately $30,000 due to his misplaced trust in the developers and subsequent investment in the project. On Reddit, community members opined that the developer’s lengthy farewell note deviated from the norm of rug pulls, as developers typically vanish without a trace after executing such fraudulent maneuvers.
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Meanwhile, the chief security officer of Binance, Jimmy Su, recently shared insights with Cointelegraph regarding the nefarious activities of malevolent actors operating on the darknet. Su highlighted the existence of a well-established ecosystem comprising intelligence gatherers, data refiners, hackers, and money launderers, all working in concert to exploit and defraud cryptocurrency users.
The cryptocurrency landscape continues to grapple with incidents of fraud and deception, underscoring the pressing need for increased security measures, regulatory oversight, and investor education. As investors lick their wounds and strive for justice, the consequences of this audacious rug pull serve as a stark reminder of the inherent risks associated with the crypto world.
