Developer’s Wagering Issues Lose $2 Million Crypto Project

According to a Reddit post, a developer posted an uncommon farewell note, apologizing and blaming his online wagering troubles for leaving a project in disarray and reducing its valuation from $2 million to $20,000 in mere minutes.

Several investors in the Encryption AI project claim that the project’s developer engaged in a rug draw during a liquidity migration event.

As a consequence, the project’s token, 0XENCRYPT, dropped from approximately $2.05 to a record low of $0.02. CoinGecko, a data aggregator for tokens, documented the enormous price decline on July 2.

Seven-day price chart for Encryption AI’s token. Source: CoinGecko

Unlike other rug draws, the developer decided to leave a letter to the project’s community apologizing for his actions and blaming his wagering addiction before vanishing and purging all the project’s social media platforms.

A number of investors shared a screenshot of the developer’s message on social media. In the post, the developer detailed his struggles with wagering and his $300,000 in online casino losses.

Moreover, although the developer was unable to guarantee that he would make restitution or relaunch the project, he pledged 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 characterizing the move as the worst birthday present and a strange conclusion to a rug pull.

The rug drag occurred on Crypto Daddi’s birthday, which he lamented. After trusting the developers and investing in the project, the Twitter user claimed he lost approximately $30,000.

On Reddit, a member of the community characterized the developer’s action of leaving a lengthy note as a “weird way to rug,” as developers typically vanish without a trace after taking such actions.

Meanwhile, Binance’s chief security officer, Jimmy Su, recently spoke  about how cybercriminals on the dark web are attempting to pilfer cryptocurrency from users.

According to Su, hackers have a well-established ecosystem consisting of intelligence collectors, data refiners, hackers, and money launderers.