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Worst Excuses Crypto Founders Used After Scamming Millions: From Fake Deaths to Accidental Burns

Worst Excuses Crypto Founders Used After Scamming Millions: From Fake Deaths to Accidental Burns

In the wild world of cryptocurrency, where fortunes can be made or lost in a blink, scams unfortunately run rampant. Founders often vanish with millions, leaving behind flimsy excuses that range from tragic to downright hilarious. A recent thread on X by @StarPlatinumSOL breaks down some of the worst ones, shedding light on these deceptive tactics. If you're into meme tokens or just curious about blockchain pitfalls, this is a must-read. Let's dive into the excuses and the real stories behind them.

The "CEO Died and Took the Keys" Ploy

One classic excuse involves faking a death to cover tracks. Take Gerald Cotten, CEO of QuadrigaCX. He reportedly died on his honeymoon in India, supposedly the only one with access to the exchange's cold wallets. Poof—$145M to $190M in user funds disappeared. But years later, suspicions linger that the death was staged, with many believing Cotten faked it to escape with the cash. It's a stark reminder to always verify multisig setups in any crypto project you invest in.

Illustration of Gerald Cotten and QuadrigaCX scam

The Timeless "We Got Hacked" Claim

Hacks are a go-to for scammers because they're plausible in the crypto space. Brothers Ameer and Raees Cajee of Africrypt in South Africa emailed users about a "breach" that wiped out all wallets, advising against contacting lawyers. Then, $3.6B in Bitcoin vanished—along with the brothers. No real evidence of a hack ever surfaced, pointing to an inside job. For meme coin enthusiasts, this highlights the importance of auditing smart contracts before jumping in.

"We're Depressed and Stressed Out"

Meme coins often see the most absurd excuses due to their viral nature. The Squid Game token, inspired by the Netflix hit, pumped hard before crashing 99.99%. The devs' farewell? "We don’t want to run the project anymore. We’re depressed and stressed." They walked away with about $3.3M. It's a prime example of how hype can blind investors—always check for locked liquidity and renounced ownership in meme projects.

Squid Game token crash and developer excuse message

The Abrupt "Actually F*ck That"

Sometimes, scammers don't even bother with elaborate stories. In one case, a project touted donations and charity as its core mission, only for the team to bail with the funds, essentially saying "actually f*ck that." Charity-themed meme tokens can be especially deceptive, preying on goodwill. Stick to transparent projects with doxxed teams.

Faking a Founder's Death for NFT Shenanigans

NFT collections aren't immune either. In one launch, the collection sold out, but 40 minutes later, the founder "died," forcing the team to sell the project. Spoiler: It was all a ruse to rug pull. With NFTs tied to meme culture, verify the team's background and use tools like rarity checkers to avoid hype traps.

The Infamous "Oh Fuck" Accident

Who could forget the Slerf meme coin on Solana? During presale distribution, the developer accidentally burned $10 million worth of tokens. Their immediate reaction? A simple tweet: "oh fuck." While this might seem like a genuine mistake, it wiped out investor value overnight. Slerf has since become a cautionary tale in the meme token community—always double-check dev competence and use burner wallets for high-risk plays.

Slerf developer's 'oh fuck' tweet after burning tokens

"Thanks for the 20 Bandos" from a Kid Rugger

In a bold move, a 13-year-old known as the Quant Kid rugged his own holders live, mocking them with "Thanks for the 20 bandos" (slang for $20,000). It's shocking how young scammers can be in this space. For blockchain practitioners, this underscores the need for community vetting and on-chain analysis tools.

Fake Death and a "Legacy" Coin

Finally, the Zerebro dev was pronounced dead by investors, with a "family member" seeking condolences on Discord. But the founder resurfaced, promoting a new token and calling the old one a "memorial." Double-dipping on death excuses? Peak crypto absurdity. Always trace wallet addresses to spot repeat offenders.

These stories from @StarPlatinumSOL's thread (view the full thread here) serve as entertaining yet educational warnings. In the meme token arena, where Solana-based coins like Slerf dominate headlines, staying informed is key. Enhance your knowledge base by following reliable sources and using DEX screeners. Remember, if an excuse sounds too wild, it probably is—DYOR always!

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