Allegations of Insider Trading Emerge Alongside Token Theft Scandal in Pepecoin Community

Former Pepecoin advocate turned crypto influencer, Jeremy “Pauly” Cahen, has stirred controversy by alleging insider trading within the Pepecoin team, concurrent with the reported misappropriation of approximately 16 trillion PEPE tokens. In a surprising twist, Pauly has opted to expose the identities of team members while revealing their wallet activities. In tandem, on-chain analysts are highlighting noteworthy Pepecoin transactions that seem to involve those on the inside.

In an update on August 26, Pauly divulged that the Pepecoin team possesses a collective stash of around $16–17 million worth of PEPE tokens, scattered across nine distinct wallets. The intriguing aspect is that these insiders have chosen not to liquidate their holdings outright. Instead, they’ve employed a strategic maneuver by offloading PEPE from a centralized exchange (CEX) wallet, effectively setting up a sizable short position.

In a tweet, Pauly expressed his intent to collaborate with various law enforcement agencies, aiming to expedite the pursuit of justice against individuals like @degenharambe and other partners linked to the @pepecoineth team. He’s adamant that the team’s alleged acts of greed and misconduct have caused undue harm to numerous individuals.

Adding to the unfolding saga, Pauly has unveiled personal details about certain members of the Pepecoin team and meticulously documented their transactional behaviors. Casting doubt on the team’s explanations regarding the use of multisig wallets and their purported PEPE holdings, Pauly contends that the Pepecoin community is being manipulated and exploited by these actions.

Meanwhile, on-chain analyst Yazan has reported the initiation of insider-driven selling of PEPE holdings. Close to 400 billion PEPE tokens have reportedly been sold, coinciding with Pauly’s revelations about the identities of Pepecoin team members. As a response to this, Yazan is urging major crypto exchanges like Binance and OKX to implement preventive measures that would curtail transactions involving insiders.

The repercussions of these developments have sent shockwaves through the Pepecoin landscape, with the token’s price taking a downward spiral of 15% due to team-initiated selloffs. Despite a brief moment of respite with a 10% uptick, the PEPE price couldn’t sustain its upward trajectory and succumbed to a decline, contributing to the overall pessimistic atmosphere within the Pepecoin community.

As of the time of writing, CoinMarketCap reports the PEPE price at $0.00000090, signifying a 7% drop over the past 24 hours.

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