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UNIKishu Inu creator charged over alleged $9m memecoin rug pull
US prosecutors accuse Alexander Sisemore, 28, of misleading Kishu Inu investors while secretly selling tokens allocated before public sales, in an alleged scheme worth about $9m.
Why it matters: The case shows US prosecutors pursuing alleged insider selling and hidden token allocations in memecoins, a sector where retail buyers rely on founders' claims about supply.
Key points
- Sisemore, 28, of Fayetteville, Arkansas, faces three wire fraud counts, each carrying up to 20 years in prison.
- Kishu Inu launched in April 2021, drew about 283,000 holders and passed $1.6bn in market capitalisation.
- Prosecutors say two founders received a combined 12% of tokens before public sales, with the other founder allegedly earning about $800,000.
Federal prosecutors have charged the creator of Kishu Inu over an alleged $9m memecoin rug pull, saying investors were misled while insiders sold tokens for personal profit.
Kishu Inu launched in April 2021 and grew to more than $1.6bn in market capitalisation, attracting roughly 283,000 holders. A May 2021 white paper described it as community-owned with no tokens reserved for the team, wording the charging document alleges was false.
The charging document covers April 2021 to at least October 2023, alleging false statements propped up prices and liquidity, and that the assurances circulated on websites, project documents and social platforms including Telegram, Twitter, Facebook and Reddit. The founders allegedly hid sales through multiple wallets and crypto mixers, with the other founder said to have earned about $800,000.
The FBI is seeking Kishu Inu purchasers and others with relevant information through a voluntary questionnaire.
What to watch: The FBI is asking Kishu Inu purchasers and others with information to respond to a voluntary questionnaire as the inquiry continues.
Live updates on NewsFeeds:AltcoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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