Cryptocurrency project Encryption AI plummeted to near zero value this week after its developers took in about $2 million to feed their online gambling addiction.

The price of 0XENCRYPT, the native token of the crypto AI ecosystem, plunged more than 99% from $2.07 to less than $0.02 after the “lag pull”. According to CoinGecko datathe token has fallen from its peak of $15.41 reached on May 21, 2023.

The project’s total market value plummeted from over $2 million to just $21,000 in seconds. Investors are not expected to be compensated.

A lag pull occurs when cryptocurrency developers bring in new projects to allow people to buy tokens before they disappear with their money.

blame the addiction

report On social media, they claim that Encryption AI will provide a safe and efficient way to launch new tokens. The project employs various bots to help users find and evaluate token issuances, and claimed the platform was designed to protect users from scams and scams.

Metanews was unable to independently verify how the theft occurred. However, in similar situations, token holders are typically not allowed to sell their assets for any reason. Instead, founders will throw away their tokens and secretly cash them.

In the case of crypto AI, the developer made the unusual decision to plead guilty, but blamed his actions on a “severe addiction to online gambling and casinos.” The 22-year-old remains anonymous and limited information is available about them.

“We would like to make an important announcement and apologize for our recent actions,” the developer wrote, according to a chat screenshot posted to Twitter.

“I must confess that I developed a severe addiction to online gambling and casinos during my liquidity transition from v1 to v2. [and] It was never my intention to scam the project. ”

Another day, another rug.#0x encryption It was very sturdy during the transition.

Market cap from 2 million to 20,000 in seconds.

Dev said he was a gambling addict and needed his money back, another reason for the book. pic.twitter.com/lc4wSC7zCT

— Bra (@BullaOF) July 3, 2023

Encryption AI does not compensate

Cryptocurrencies based on memes and related to internet culture frequently report rapid booms and busts. Encryption AI was clearly meant to piggyback on the artificial intelligence hype that began in November when he announced OpenAI’s popular chatbot ChatGPT.

The project joins the list of rug heists expected to occur in 2023. Morgan defender Fintock has carried out one of the biggest robberies of the year. solid $31.6 million. He claimed to be backed by Morgan Stanley. Recently, the developers of Chibi Finance turned off Over $1 million.

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Crypto AI developers said they were unlikely to compensate investors.

“I can’t guarantee if or when I will be able to make amends and restart 0xEncrypt, but I promise to make every effort to be a better person,” the developer said.