Pepecoin Team Faces Insider Trading Accusations Amid Token Theft Controversy

The cryptocurrency world is buzzing with recent allegations surrounding Pepecoin PEPE/USD. The team behind this digital currency is now under the spotlight, accused of insider trading.

This controversy emerges shortly after a significant heist involving 16 trillion PEPE tokens, amplifying concerns around the coin.

Former Pepecoin promoter and now a crypto influencer, Jeremy “Pauly” Cahen, has been at the forefront, shedding light on these claims.

Also Read: Crypto Analyst Sees Pepe Coin Dethroning Shiba Inu As 2nd-Largest Meme Coin: Calls SHIB 'Overvalued Garbage'

He suggests that the Pepecoin team possesses a substantial cache of PEPE tokens, estimated to be worth between $16–17 million.

These tokens, spread over nine distinct wallets, were strategically maneuvered rather than sold, hinting at possible internal trading strategies, as Cointelegraph reports.

Pauly, in his quest for accountability, remarked,“I’ll likely be working with multiple branches of law enforcement to ensure that @degenharambe & the rest of his partners on the @pepecoineth team get brought to justice as soon as possible. Their greed and crimes have caused undue harm to many."

Pepecoin issued a statement on social media regarding the theft:

an announcement to the $PEPE community:

Yesterday on August 24th, 2023, a series of unexpected transactions took place from the $PEPE multisig CEX
Wallet in which ~16 Trillion $PEPE tokens (worth roughly $15m USD) were transferred to various crypto exchanges (OKX, Binance,… pic.twitter.com/iZmXV1TAvw

— Pepe (@pepecoineth) August 26, 2023

Pauly further disclosed specific details about the team members and their crypto dealings, challenging their earlier statements about their multisig wallets and PEPE assets.

Supporting Pauly's assertions, crypto analyst Yazan has identified the onset of PEPE token sales by insiders, with around 400 billion PEPE already offloaded.

The list of insiders in this post have started selling $PEPE 50 minutes ago.

400 billion $PEPE have already been sold mainly from this address:
0x22f6215b40434D9135B06f1C676fd9291936Aac3

You can trace their activity here:https://t.co/BYMz8cfrFE https://t.co/k0KCpeHTyR

— Yazan (@YazanXBT) August 26, 2023

He has urged leading crypto exchanges like Binance and OKX to suspend transactions from these implicated parties.

The repercussions of these disclosures are evident in Pepecoin's market dynamics. Despite a fleeting price surge, the PEPE token's value has been dwindling, mirroring the escalating apprehensions of its stakeholders. 

At the time of writing, PEPE was trading at $0.0000008666, 23 percent down in the last seven days. 

The news comes amid a significant increase in crypto-related crime over the past four years. Eun Young Choi, the newly appointed head of the Department of Justice's (DOJ) cryptocurrency enforcement division, has pledged to fortify the crackdown on illicit activities in the digital asset sector.

Now Read: Crypto Analyst Decodes Pepe Coin's Sudden Freefall: Is The Bottom In?

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.