Pepecoin founder blames ‘nefarious ex-team members’ for unexpected $16M withdrawal

On Aug. 24, 16 trillion Pepecoins (PEPE), worthy astir $15.7 cardinal astatine the time, were unexpectedly withdrawn from the project’s multi-signature centralized speech wallet. An anonymous laminitis of the meme coin pointed the digit astatine 3 erstwhile squad members arsenic the culprits down the transfers successful a post connected Aug. 25.

The transfer, successful which astir 60% of the PEPE tokens successful the multi-sig wallet were moved, sparked speculations of a rug pull. The stolen Pepe tokens were rapidly transferred to and sold connected exchanges including Binance, OKX, KuCoin, and Bybit. The terms of PEPE fell astir 15% connected the transportation time arsenic investors started panicking.

Digital plus probe steadfast ASXN besides reported that the fig of signatures required to run the multi-sign wallet was changed from 5/8 to 2/8.

Pepecoin founder’s mentation of the incident

According to the founder, who posted his extended connection connected X, formerly Twitter,

“Since its inception, $PEPE has unluckily been plagued by interior strife with a information of the squad being atrocious actors led by large egos and greed.”

The laminitis added that portion the task is present “entirely escaped of this baggage,” the founding squad often faced struggle since its aboriginal days. The “majority” of the token’s founding squad started distancing themselves aft the archetypal week of task inception, the laminitis noted.

The laminitis complained that these squad members “blocked” advancement connected making donations oregon purchases with multi-sig tokens. The alleged squad members withheld signatures either due to the fact that of disagreements, inability to supply signatures, oregon being unreachable for “weeks astatine a time,” the laminitis wrote, adding: 

“Yesterday these 3 ex-team members came backmost down my back, logged onto the multi-sig, stole 16 Trillion/ 60% of the 26 trillion multi-sig tokens, and sent them to exchanges to sale.”

After the unplanned transfers, these squad members removed themselves from the multi-sig wallet “in an effort to absolve immoderate relation to $PEPE,” the laminitis alleged. The rogue squad members besides deleted their societal media accounts, truthful that the laminitis was near with  ‘nothing but a connection stating “the multi-sig has been updated, you are present successful afloat control”.’

What comes next

The faceless laminitis of Pepecoin assured investors that the remaining 10 trillion PEPE tokens successful the multi-sig wallet arsenic good arsenic the project’s authoritative Twitter relationship are successful “safe hands.” The laminitis wrote:

“I americium shocked astatine what took spot and would similar to apologize for each of the fearfulness and uncertainty and immoderate losses the actions of these atrocious actors person caused members of our community.”

The laminitis explained that the tokens successful the affected multi-sig wallet were “never meant to beryllium sold connected the marketplace oregon for the squad to nett from.” The anonymous persona further stressed that if helium had been successful complaint of the affected wallet “the full time,” helium would’ve made immoderate donations and burned the bulk “long ago.”

Dileaniating his program for the future, the laminitis wrote:

“I person started discussions with immoderate salient assemblage members who volition beryllium helping maine usher things forward, and I americium excited to beryllium successful the presumption to bash everything we tin to acceptable up $PEPE to thrive arsenic the decentralized and anti-fragile meme-coin plus it deserves to be.”

Regarding the remaining 10 trillion PEPE successful the multi-sig wallet, worthy astir $9 cardinal astatine present, the laminitis said helium would transportation them into a caller wallet, “where they volition safely remainder until a usage oregon pain arises.” The laminitis is negotiating for web domains and usernames for Pepecoins and erstwhile the tokens person been utilized for specified income oregon donations, helium volition “burn the remainder.”

Skepticism successful the Pepe community

The founder’s station connected X recovered mixed responses, with immoderate urging the laminitis to instantly pain the remaining tokens successful the multi-sig wallet.

Other users, however, questioned the veracity of the claims. The skepticism is based connected the information that the transaction that changed the fig of signers required to 2/8 was signed by five wallets, perchance indicating the engagement of much than 3 people, contrary to the founder’s claims.

The station Pepecoin laminitis blames ‘nefarious ex-team members’ for unexpected $16M withdrawal appeared archetypal connected CryptoSlate.