Former Pepecoin (PEPE) promoter turned cryptocurrency influencer Jeremy “Pauly” Cahen has filed insider trading charges against the Pepecoin team after some 16 trillion PEPE tokens were reportedly stolen. Pauly has now exposed the identities of the team members, leaking their wallet activity. On-chain analysts also pointed out that Pepecoin transactions involved insiders.
In an update on August 26, Pauly disclosed The Pepecoin team owns approximately $16-17 million worth of PEPE tokens spread across 9 wallets. Surprisingly, insiders haven’t sold their stakes. Instead, they strategically offloaded PEPE from centralized exchange (CEX) wallets, establishing large short positions.
“I will likely be working with multiple law enforcement agencies to ensure that @degenharambe and his other partners on the @pepecoineth team are brought to justice as soon as possible. Their greed and crime have caused undue harm to many.”
He also revealed the personal information of several members of the Pepecoin team and detailed their trading activities. According to Pauly, the Pepecoin team is taking advantage of the community, claiming that their interpretation of multisig wallets and PEPE holdings is completely wrong.
The insider lists in this post are up for sale $PEPE 50 minutes ago.
400 billion $PEPE Already sold primarily from this address:
You can follow their activities here: https://t.co/BYMz8cfrFE https://t.co/k0KCpeHTyR
— Publisher (@ApostedXBT) August 26, 2023
According to on-chain analyst Yazan, the insider sell-off of PEPE holdings has already begun, and about 400 billion PEPE have been sold, which coincides with the time when Pauly exposed the Pepecoin team members. In response, Yazan called on cryptocurrency exchanges such as Binance and OKX to take steps to prevent insider trading.
related: PEPE whale seizes dip, buys $529,000 worth of tokens
The price of Pepecoin has turned bearish, plunging 15% as the team executes the sell-off. Although the price of PEPE briefly rose by 10%, it failed to maintain the upward momentum and fell, exacerbating the general negative sentiment in the community.
According to CoinMarketCap, PEPE was priced at $0.00000090 at the time of writing, down 7% over the past 24 hours.
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