A WallStreetBets moderator-linked bot user zjz.eth converted part of the WSB Coin (WSB) supply intended for the team into ETH in a Uniswap pool over several hours, triggering a price drop in the asset.
Initially тревогу забил a user Ice Bagz, which circulated through the community, as on-chain data excluded other interpretations.
Researcher ZachXBT confirmed concerns, estimating zjz.eth’s sales at 334 ETH (~$665,000). He said a personal message from the community founder in November 2022 suggested that team members should be “greedy and immoral bastards.”
Another day another meme coin rug this time involving ZJZ.eth from @wsbcoinofficial who suddenly dumped a large portion of the WSB team supply for $635k (334 ETH)
In Nov 2022 he messaged me
“I guess we should have been greedy amoral bastards instead ?” pic.twitter.com/b9mfrZv0CD
— ZachXBT (@zachxbt) May 4, 2023
Позднее аналитики PeckShield заявили о продажах актива на 8312 ETH другим кошельком, на который zjz.eth ранее отправил 46,7 млн WSB.
#PeckShieldAlert @zachxbt has reported that zjz.eth from @wsbcoinofficial rugged $WSB. $WSB has dropped -86%.
It appears that zjz.eth dumped a large portion of $WSB for 334 ETH ($635k).
Another wallet (0x9290…672) that received 46.7M $WSB from zjz.eth also seems to have dumped… pic.twitter.com/W6aGF5UIss— PeckShieldAlert (@PeckShieldAlert) May 4, 2023
ZachXBT in a separate tweet stated that another WSB Coin moderator named OIP helped authorise transactions, acting as the second signer in the multisig-wallet.
I reached out to @wsbmod for clarification on the other multisig signer for the 6.86B WSB transaction and they claim it belongs to the mod OIP.
So zjz created the transaction and OIP executed it. pic.twitter.com/LMdQQxNDST
— ZachXBT (@zachxbt) May 4, 2023
Еще один соучредитель сообщества — WSBMod — организовал экстренную встречу в Twitter Spaces, которая привлекла свыше 8500 участников WallStreetBets. Им не удалось выйти на связь с zjz.eth для прояснения ситуации.
— WSBMod (@wsbmod) May 4, 2023
“If you do not contact me within four hours, I will file a police and FBI report. You are fully doxxed. I do not understand why you would do this. If there are any explanations, you should share them. I do not understand how this is possible. You can still return the money,” warned WSBMod “colleague”.
hey @zjzWSB, if you don’t get in touch with me within 4 hours I will file a police and FBI report.
you are fully doxxed. I don’t understand why you would do this.
if somehow theres an explanation you have to speak up but idk how that’s possible
you can still return the money.
— WSBMod (@wsbmod) May 4, 2023
WSB Coin launched on May 2. Moderators described the asset as the “official unofficial meme coin of r/wallstreetbets.” Ten percent of the supply was reserved for WallStreetBets participants, five percent for its moderators.
Enough with the fake $WSB coins. Time for the sub to have one of its own.
No team, no taxes. 10% reserved for r/wallstreetbets. 5% reserved for the current mods. https://t.co/D43Qm8U7BS
— WSBMod (@wsbmod) May 2, 2023
According to CoinGecko, at the time of writing WSB’s daily losses had narrowed to 85.4%.
As noted earlier, former SEC attorney John Reed Stark noted that the digital-asset market is rife with market manipulation, insider trading and fraud. This, among other reasons, contributed to a «cryptocurrency crash».