Insider trading claims surface amid token theft



Former Pepecoin (PEPE) promoter turned crypto influencer Jeremy “Pauly” Cahen has leveled insider trading allegations against the Pepecoin team following the reported theft of around 16 trillion PEPE tokens. Pauly is now exposing team members’ identities, divulging their wallet activities. On-chain analysts also point to significant Pepecoin transactions involving insiders.

In an Aug. 26 update, Pauly disclosed that the Pepecoin team possesses approximately $16–17 million in PEPE tokens distributed across nine wallets. Surprisingly, the insiders refrained from selling the holdings. Instead, they strategically offloaded PEPE from a centralized exchange (CEX) wallet, establishing a substantial short position.

“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 & crimes have caused undue harm to many.”

He has additionally revealed personal information about several individuals from the Pepecoin team and detailed their transaction activities. According to Pauly, the Pepecoin team is exploiting the community, and he asserts that their explanations regarding multisig wallets and PEPE holdings are entirely false.

According to on-chain analyst Yazan, insider selling of PEPE holdings has commenced, with approximately 400 billion PEPE already sold, coinciding with Pauly’s exposure of Pepecoin team members. In response, Yazan has called upon crypto exchanges such as Binance and OKX to implement measures to prevent transactions from insiders.

Related: PEPE whale seizes dip opportunity, buys $529K worth of tokens

Pepecoin’s price has taken a bearish turn, plummeting by 15% due to selloffs executed by the team. Despite a brief 10% increase, the PEPE price couldn’t maintain its momentum and has experienced a decline, adding to the prevailing negative sentiment within the community.

According to CoinMarketCap, the PEPE price stands at $0.00000090 at the time of writing, a 7% decrease over the last 24 hours.

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