An announcement from the team behind the eighty-fifth largest crypto asset by daily trading volume, Pepecoin (PEPE), revealed that the former executives were involved in a crypto crime that resulted in a loss of $16 million. The report demonstrated before stepping down of the suspects, the three officials withdrew 16 trillion PEPEs, equivalent to $15 million, from the multisig wallet.
The three are accused of trading the stolen tokens on multiple exchanges and hiding the evidence by deleting their social accounts.
Pepecoin Losses Assets
Addressing the X community (formerly Twitter) on Friday, August 25, the founder of Pepecoin provided an overview of the criminal activity that resulted in the loss of substantial assets. The executive blamed the three ex-officials for the misappropriation of funds.
In his tweet, the official regretted that the three suspects left the company in financial crisis. Reporting on the incident, the founder stated that usually, the multi-sig wallet requires 3⁄4 signatories for the approval of funds.
The founder was among the four signers for the multi-sig wallets. The Pepecoin founding member claimed that the suspects accessed the multi-sig and stole 16 trillion tokens, which constitute 60% of the total assets stored in the wallet. Immediately after completing the looting, the three traded the token through KuCoin, Binance, OKX, and Bybit.
The executive claimed to have received a notification confirming an update on the multi-sig wallet. He lamented that the assets on the multi-sig dropped from ⅝ to around 2/8. The official confirmed that the wallet was left with 10 trillion PEPE tokens.
Pepecoin Takes Proactive Measures
The Pepecoin team plans to transfer the assets to a new wallet as a proactive measure to ensure the funds remain secure until the need arises. The Pepecoin team anticipates either burn or use the remaining multisig tokens.
The tokens could be used to acquire the web domain and usernames to support the Pepecoin operations. Also, the official stated that the token issuer could burn the tokens to create a decentralized and anti-fragile ecosystem.
Occasionally, multi-sig wallets are used to improve the security of the assets of a crypto firm that requires multiple members to approve transactions. The Pepecoin incident was considered usual since the suspect deleted their social accounts to leave no traces of evidence.
The official claimed that unlawful activity on the multi-sig wallet stems from the big ego and greed of the former employees. In a previous report, the work ethic of the three suspects were questioned after undermining the operation of Pepecoin.
Since the launch of PEPE, the three executives have been among the most difficult employees to work with. Despite having bad actors in Pepecoin management, the meme coin issuer plans to safeguard the community’s interest.
In an apologetic note, the executive expressed his deep regret for the August 25 happening that exposed the Pepecoin community to potential losses and fear of uncertainity. He assured to make things right after the departure of the three officials.
Soon, the founding member plans to work well with the community by professionally issuing tokens without negligence. He pledged to do his best to steer Pepecoin operations in a direction that will attract success.
Following the announcement, the PEPE token garnered bullish steam, defiling its dribbling momentum experienced in early August. At the beginning of the month, PEPE witnessed a double-digit loss after being unable to break above the $0.00000105 support level. At press time, PEPE is trading at $0.0000006664, a 6.27% increase in a day, according to CoinMarketCap.