In a shocking revelation that has stirred the crypto market, the Solana-based memecoin named DJT, which was initially marketed as a project backed by Donald Trump’s youngest son Barron, has been exposed as a fraudulent scheme.
The orchestrator behind this scam is none other than Martin Shkreli, a controversial figure previously known for his provocative maneuvers in the pharmaceutical industry.
Solana-Based Trump Memecoin DJT Exposed as Fraud
The intrigue around DJT began when insiders claimed Barron Trump was involved in the creation of the memecoin, offering early investment opportunities to a select few. This narrative quickly gained traction within the crypto community, drawing significant attention and speculative investments.
The turning point came when Arkham Intel, a crypto intelligence firm, announced a $150,000 bounty for the real identity of DJT’s creator. This announcement sparked a flurry of activity among crypto investigators. Notably, ZachXBT, a respected figure within the crypto sleuth community, played a pivotal role in uncovering the deception.
At approximately 11:49 PM UTC, ZachXBT responded to Arkham’s bounty announcement, indicating his submission for the reward. Shortly thereafter, at 11:57 PM UTC, Martin Shkreli, in a state of panic, directly messaged ZachXBT. By 12:27 AM UTC, Shkreli publicly declared himself as the mastermind behind the DJT project.
Source: X
Concurrently with Shkreli’s admission, significant financial transactions linked to the memecoin suggested malfeasance. An individual with the username verso.sol, previously an insider in Shkreli’s other projects, was discovered offloading $832,000 worth of DJT, converting these funds to USDC, and transferring them to a centralized exchange. This transaction, coupled with Shkreli’s association with other crypto projects, highlighted a pattern of deceptive financial practices aimed at profiting from misleading claims.
DJT Memecoin Scam Fallout: Repercussions and Legal Issues
The fallout from the DJT memecoin scam had immediate repercussions on associated financial instruments and stakeholders. Steven Steele, Marketing Director for the legitimate TRUMP memecoin, highlighted the confusion and damage caused to Trump’s legitimate business interests. He noted a significant drop in the stock price of Trump Media, which also trades under the ticker DJT.
“Martin was sentenced to prison under President Trump’s watch. President Trump had this to say about Martin at the time: ‘He looks like a spoiled brat. I thought it was a disgrace’ – Trump said of Martin. Considering the bad blood history between Martin & Trump, is it really so far of a stretch to consider that the DJT token was in part, created out of revenge to make Trump look bad and harm the Trump brand while simultaneously filling his pockets for himself and insiders? Can’t say for sure, but it certainly seems probable,” Steele speculated via X.
Source: X of dated 19 Jun 24
Further complicating Shkreli’s legal position, Adam Cochran, managing partner at CEHV, discussed the potential parole violations. Shkreli, still under parole conditions that restrict his financial dealings and prohibit any form of self-employment involving client money, now faces serious legal consequences. Cochran specifically pointed out that Shkreli’s use of an offshore Kucoin account to fund the memecoin might not have been reported to parole authorities, signaling possible fraud and parole violations.
“So either he goes to jail for fraud, or he managed an investment opportunity on behalf of Barron and goes to jail for violating terms of parole. But most importantly, do you think he includes his offshore Kucoin account (which he funded this coin with) on his financial reports to the courts?,” Cochran wrote via X.
The exposure of the DJT memecoin scam ignited a broader discourse within the crypto community about the nature of memecoins and their impact on the cryptocurrency market. Prominent trader Josh Rager lamented the focus on speculative, meme-driven projects that undermine the integrity and potential of blockchain technology.
Rager emphasized that “the crypto market and industry as a whole needs to re-focus on promising tech again, to teams/projects building something worthwhile. There’s been a shift of narrative on memes and it’s been a net-negative with an over saturation of crap tokens and rugs flooding the market. Today was a real eye opener for a lot of people.”
TRUMP price, 1-day chart | Source: TRUMPUSDT on TradingView.com
At press time, the legitimate TRUMP (MAGA) coin traded at $8.62.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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