Crypto Developer Commits $2M Rug Pull Fraud to Fund Gambling Addiction

Crypto Project Gone Wrong

According to a Reddit post, a developer of the Encryption AI project has left a memorable farewell note, apologizing for his actions and blaming his online gambling problems for the project’s downfall. The token, 0XENCRYPT, went from trading at around $2.05 to an all-time low of $0.02, reducing the $2 million valuation to a mere $20,000 within minutes.

Investors of the project shared a screenshot of the developer’s message on social media. In the post, the developer opened up about his struggles with gambling and revealed that he lost $300,000 in online casinos. He also promised to “make every effort to become a better person” and attempt to relaunch the project.

The rug pull, which is a common term in the crypto world, was a surprise to many in the crypto community. Crypto.com and Voyager Crypto are two of the many companies that have reported the incident.

Crypto Community Outraged by Rug Pull

Crypto users were shocked and angered when a developer pulled a rug on them, with some asking for karmic retribution and others calling it the worst birthday present ever. Trader Crypto Daddi, who lost approximately $30,000, lamented that the rug pull occurred on his birthday. On Reddit, another crypto user expressed that the rug pull was done in a “weird way” as developers usually just vanish without a trace.

Darknet Hackers Target Crypto Users

Jimmy Su, Binance’s Chief Security Officer, recently spoke to Cointelegraph about how darknet hackers are aiming to steal from crypto users. According to Su, these cybercriminals have a well-developed network of intelligence collectors, data refiners, hackers, and money launderers.