The world of cryptocurrency is full of unpredictable risks. Recently, moderators from the subreddit WallStreetBets rolled out a meme coin called “WSB coin”. They claimed it to be the official meme coin belonging to the subreddit.
Unsuspecting members of the community believed the meme coin was legitimate and decided to invest in it, especially now that meme coins are on the rise.
Unfortunately, the project turned out to be created without the permission of the team behind the subreddit. The mods involved with the rug project took off with $635K worth of investors’ money which resulted in significant losses for investors.
The official team behind WSB was quick to respond to the rug by hosting a few Twitter spaces explaining what had happened and how it happened. The mods responsible for the scam identified by their Twitter handles are @zjzWSB and @is_unpopular.
A Twitter user by @WSBMod who is a part of the WSB mods still with the project state that:
“@zjzWSB and @is_unpopular are 100% guilty scammers who manipulated me and earned my trust likely with bad intentions from the start.”
He went on to explain that he thought because they were doxxed top mods in one of the largest subreddits that the party will not risk scamming others.
The user also released some dox information about the two scammers which included their legal names and addresses. He also said that they had since kicked him off the WSB Discord.
WSBMod urged them to return investors’ money before legal action is taken against them. He admitted to his mistake in trusting them and said they deserve jail time for breaking people’s trust by scamming them.
RESPONSE FROM THE SUSPECTS
@zjzWSB has stepped forward to explain that his move was to protect the community because he was suspicious of WSBMod. Zjz said he dumped the tokens because he thought WSBMod was giving himself secret airdrops.
This was disclosed by ZachXBT who further said he found a direct message from zjz that was sent in November 2022 where zjz told ZachXBT, “I guess we should have been greedy amoral bastards instead”
This is something to ponder upon.
At the time of writing this article, @is_unpopular is yet to step forward to explain his side of the story.
THE WAY FORWARD
Zjz has agreed to return the funds taken from his end. WSBMod has set up a multisig to enable him to return the funds. The transaction was set up to the overseen by two third-party persons, ZachXBT and Loopify to ensure transparency in the whole process.
WSB has also decided to rehire two of its old mods that worked on the project to help out given that they already have experience managing the community before.
At the moment, the mod team has resolved to work for free. Compensation for their work will be decided by WSB community through voting.
Meanwhile, they are focusing on building and releasing their official meme coin.