In an unexpected turn of events, the founder of popular meme cryptocurrency Pepe has attributed a $16 million withdrawal to “nefarious ex-team members.” This surprising revelation has raised questions about the security and integrity of the platform. Find out more about this shocking incident and its implications for the future of Pepe in our latest article.
The Pepe Coin Debacle: A Closer Look at the Controversial Transfer
On August 24th, a shocking event unfolded within the Pepe community as 16 trillion Pepe tokens (PEPE), worth approximately $15.7 million, were abruptly withdrawn from the project’s multi-signature centralized exchange wallet. This unexpected transfer sparked speculations of a rug pull, causing panic among investors and leading to a 15% drop in the price of PEPE on that day.
An anonymous founder of the meme coin took to a post on August 25th to accuse three former team members of orchestrating the controversial transfers. The stolen Pepe tokens were swiftly sent to exchanges, including Binance, OKX, KuCoin, and Bybit, where they were promptly sold.
Furthermore, digital asset research firm ASXN discovered that the number of signatures required to operate the multi-sign wallet had been changed from 5/8 to 2/8, as reported in a tweet.
Founder’s Explanation of the Incident
In response to the controversy, the Pepe founder, in an extensive statement posted on X, formerly Twitter, shed light on the inner turmoil that had plagued the project since its inception.
According to the founder, “Since its inception, PEPE has unfortunately been plagued by inner strife with a portion of the team being bad actors led by big egos and greed.” The founder revealed that the majority of the token’s founding team had distanced themselves from the project after the first week, further hinting at ongoing conflicts.
The founder went on to express frustration with the ex-team members, claiming they hindered progress by withholding signatures for donations or purchases. The three individuals allegedly logged into the multi-sig wallet without permission, stole 16 trillion tokens, and transferred them to exchanges for sale. Following these actions, the rogue team members removed themselves from the multi-sig wallet and deleted their social media accounts, leaving the founder with a message stating, “the multi-sig has been updated, you are now in full control.”
The Future of Pepe: Rebuilding Trust and Thriving as a Decentralized Asset
Despite the setback caused by the incident, the faceless founder assured investors that the remaining 10 trillion PEPE tokens in the multi-sig wallet, alongside the project’s official Twitter account, are in safe hands.
The founder expressed shock at the turn of events and extended apologies for the fear, uncertainty, and any losses experienced by the community. Emphasizing that the stolen tokens were never meant to be sold on the market for profit, the founder outlined plans for the future.
Discussions with prominent community members are underway to guide the project forward, ensuring the decentralization and anti-fragility of PEPE. The founder aims to transfer the remaining tokens to a new wallet, where they will be kept secure until needed for sales, donations, or burns.
Skepticism Within the Community
While some members of the Pepe community supported the founder’s statement, urging immediate burning of the remaining tokens, others questioned the authenticity of the claims. Users pointed out that the transaction that changed the number of signers required in the multi-sign wallet involved five wallets, potentially indicating the involvement of more than three individuals as stated by the founder.