Crypto developer commits $2M rug pull fraud to fuel gambling addiction
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According to a Reddit post, a developer has posted an unusual farewell note, apologizing and blaming his online gambling woes after leaving a project in shambles, turning a $2 million valuation into $20,000 within minutes.
Several investors in the Encryption AI project have reported that its developer performed a rug pull during a liquidity migration event. As a result, the project’s token, 0XENCRYPT, went from trading at around $2.05 to an all-time low of $0.02. Token data aggregator CoinGecko recorded the massive price drop around July 2.
Unlike other rug pulls, the developer decided to leave a letter to the project’s community, apologizing for his actions, and blaming his gambling addiction for the move before disappearing and deleting all the project’s social media platforms.
Various investors a screenshot of the developer’s message on social media. Within the post, the developer shared his struggles with gambling and highlighted that he lost $300,000 in online casinos. In addition, though the developer was unable to guarantee that he would make amends or relaunch the project, he promised to “make every effort to become a better person.”
Community members were outraged by the rug pull, with some wishing karma upon the developer and others describing the move as the worst birthday present, and a weird ending to a rug pull.
