A 21-year-old man allegedly took his own life while awaiting sentencing for his involvement in an NFT scam known as a "Rug Pull."
NFT Scam and Conviction
Berman Jerry Nowlin, accused of fraud and money laundering, reportedly died by suicide. In November 2024, Nowlin was found guilty of participating in an NFT scheme that defrauded investors of $400,000. Together with 25-year-old Devin Alan Rhoden, he successfully launched two NFT collections, "Undead Apes" and "Undead Lady Apes," before abruptly canceling a third, "Undead Tombstone."
According to the U.S. Department of Justice, the duo attracted investors with false claims, including fabricated partnerships with prominent companies and promises of benefits for NFT holders. After collecting payments, the team deleted their Discord and Twitter accounts, a move classified as a classic "Rug Pull."
Impact on Family and Defense
Nowlin's family revealed that he fell into a deep depression following his conviction. His mother claimed he was an unwitting participant in the scheme and placed the blame on Rhoden.
"In his eyes, I don’t think he believed he did anything wrong," said his brother, Daniel Barker. "My brother was just a young, naive kid who was taken advantage of."
According to Nowlin's lawyer, J. Jervis Wise, Nowlin was merely a technical developer for the project, while Rhoden handled the marketing. "He had no knowledge of the fraudulent plans," Wise stated.
Evidence of Money Laundering
Despite the defense, the Department of Justice presented evidence of Nowlin’s direct involvement. Investigations revealed that he laundered money using "chain-hopping" and illegal cryptocurrency mixers to obscure the movement of funds. These funds were traced directly to his personal bank account.
A Tragic End
Nowlin faced up to five years in federal prison, with sentencing scheduled for January 2025. However, on December 21, 2024, he was found dead at his home in Alabama. The cause of death remains officially unclear, but his family stated it was suicide.
This tragic case highlights the immense pressure and consequences faced by young individuals navigating the challenges of the digital world.

#nft , #Rugpull , #cybercrime , #blockchain , #MoneyLaundering

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In late 2021, scammers turned the global hype around Netflix’s Squid Game into a crypto nightmare. By launching the Squid Game Token (SQUID), they exploited public interest to steal $3.3 million in a textbook rug pull.
🚨 What Happened?
Scammers launched SQUID in October 2021, promising a play-to-earn gaming platform inspired by the hit show.SQUID skyrocketed from pennies to $2,860 within weeks, driven by media buzz and FOMO.On November 1, 2021, the price crashed to zero as the scammers disappeared, leaving investors with nothing.
💡 How They Tricked Investors:
Marketing implied a connection to Netflix and Squid Game, though none existed.Investors could buy but not sell tokens, masked as a game feature requiring additional purchases of “marbles.”FOMO, rising prices, and promises of massive returns kept investors hooked despite clear red flags.
🚩 Missed Warning Signs:
No official tie to Netflix or Squid Game.A poorly designed website with grammatical errors.Restricted selling, a classic rug-pull tactic.
📉 Lessons Learned:
Do Your Homework: Always verify claims of affiliation with major brands or projects.Beware of Selling Restrictions: Tokens you can’t sell are a glaring red flag.Anonymous Teams: Extra scrutiny is crucial when a project’s creators hide their identities.
🛡️ Avoiding Future Scams:
This event is a cautionary tale for all investors. Don’t let cultural excitement cloud your judgment, and always prioritize due diligence over hype.
📢 What Do You Think?
Have scams like this affected your crypto journey? Share your insights in the comments below.
#Cryptoscam #Rugpull #SquidGameToken #TheCoinRepublic #CryptoNews

In a surprising turn of events, the Multichain platform has witnessed a sudden halt in activity, sparking suspicions of a potential hack or rugpull rather than a planned migration. Alarming reports have emerged of multiple bridges being drained, indicating a possible breach in the system's security. However, there is a silver lining as it seems that there is no immediate need to revoke approvals.

https://etherscan.io/tx/0xde3eed5656263b85d43a89f1d2f6af8fde0d93e49f4642053164d773507323f8

The timeline of events paints a concerning picture:

4:21 PM UTC - First Suspicious Transaction: A transaction is sent, raising eyebrows regarding its nature and intent. Link to transaction

6:33 PM UTC - Draining of 30MM WBTC from Multichain Bridge: Disturbingly, a significant amount of Wrapped Bitcoin (WBTC) and other assets are withdrawn from the Multichain bridge. Link to transaction

7:06 PM UTC - PeckShield's Warning: Renowned blockchain security firm, PeckShield, tweets about the situation, further fueling concerns among the crypto community. Link to tweet

7:35 PM UTC - LayerZero Denies Involvement: LayerZero, a prominent blockchain infrastructure provider, confirms that they are not directly involved in the suspicious activities, adding another layer of uncertainty to the situation.

7:46 PM UTC - Drainage of Moonriver Bridge: The draining spree expands as the Multichain Moonriver bridge falls victim to the mysterious transactions. Link to transaction

8:05 PM UTC - Draining of Dogechain Bridge: The Multichain Dogechain bridge becomes the next target of the ongoing drainage, deepening concerns about the extent of the breach. Link to transaction

The series of events has left the cryptocurrency community on edge as they await further information about the motives behind these suspicious activities. The draining of multiple bridges suggests a coordinated effort to siphon funds from the Multichain ecosystem.

Despite the gravity of the situation, there is some relief in the fact that approvals do not require immediate revocation. However, it is crucial for users and stakeholders to exercise caution and closely monitor developments surrounding Multichain to safeguard their assets.

As investigations unfold, the Multichain team must work swiftly to identify the root cause of these incidents, enhance security measures, and provide transparent updates to regain the trust of their users and the wider cryptocurrency community.

#hackers #rugpull #multichain #MULTI $MULTI

What Would You Do if Your Investment Vanished Overnight?
Picture this: You wake up, excited to check your crypto portfolio, only to find that your funds are gone. Completely. No warning, no explanation. Unfortunately, this isn’t just a nightmare scenario — it’s a cold reality in the world of decentralized finance (DeFi).
Welcome to the world of DeFi rug pulls: schemes where malicious developers create tokens, pump their value, then flee with all the liquidity. In 2023 alone, rug pulls accounted for over $1 billion in stolen funds, and scammers are only getting smarter.
Think it can’t happen to you? Think again. The key to staying safe isn’t luck — it’s knowledge. By the end of this guide, you’ll know how these scams work, recognize their warning signs, and take actionable steps to protect your hard-earned money.
What Is a DeFi Rug Pull? (And Why It Matters)
A rug pull is a scam in which developers launch a seemingly legitimate token or DeFi project, hype it up to attract investors, and then remove liquidity (or engineer the code) so that investors can’t sell. You’re left holding worthless tokens, while the scammers laugh all the way to the bank.
Types of Rug Pulls:
1. Hard Rug Pull: The project’s smart contract contains malicious functions — often called “honeypots” — that prevent you from selling or withdrawing your funds. Once the token value peaks, the scammers drain the liquidity pool, making your tokens worthless.
2. Soft Rug Pull: Instead of an instant crash, the developers slowly sell off their large token holdings over time. As they liquidate their positions, the token’s value steadily declines until investors realize they’ve been left holding the bag.
Why Care? Because DeFi is largely unregulated and anonymous, it’s fertile ground for fraudsters. Understanding how rug pulls work helps you steer clear of losing your assets in seconds.
How Do DeFi Rug Pulls Work? (Inside the Scammer’s Playbook)
Step-by-Step Breakdown:
1. Create a Token: Scammers launch a new token with a catchy, trendy name (e.g., “ShibaGold” or “PikachuCoin”) to pique investor interest.
2. Generate Hype: They use sleek websites, professional-looking whitepapers, social media influencers, Telegram shills, and even fake partnerships to create buzz.
3. Attract Liquidity: Early investors buy in, hoping to catch the next big crypto wave. The liquidity pool grows, making the token appear more legitimate.
4. Pull the Rug: Once the value soars, the developers remove the liquidity or execute a malicious function, leaving investors unable to sell or recoup losses.
5. Disappear: The scammers vanish, taking the funds with them and leaving investors empty-handed.
Red Flags to Watch For (Don’t Get Fooled)
The good news? Rug pulls often reveal themselves through certain warning signs. Keep an eye out for these red flags before investing:
• 🤐 Anonymous or Undoxxed Developers: Legitimate projects often have verifiable, transparent teams. If the team members are completely anonymous, ask why.
• ❌ No Smart Contract Audit: Reputable projects undergo audits by reputable firms like CertiK, Hacken, or OpenZeppelin. No audit? That’s a glaring risk factor.
• 🎮 Extreme Token Concentration: If a single wallet or a small group of wallets hold the majority of the token supply, they can crash the price by selling at will. Check Etherscan or BscScan to confirm token distribution.
• 🔒 Restricted Contracts and Unverified Code: If the code is not open-source or verified on platforms like Etherscan, and you can’t find it on GitHub, proceed with caution.
• 📣 Overhyped Marketing and Unrealistic Promises: Guaranteed “risk-free” returns or sky-high yields with no explanation are common scam tactics.
Pro Tip: Always distrust projects that hinge solely on hype. If they can’t back claims with substance, steer clear.
Real-Life Examples (Rug Pulls That Shook the Community)
1. The Squid Game Token Scam (2021)
Inspired by the hit Netflix show, “Squid Coin” skyrocketed in value. But investors soon realized they couldn’t sell. The developers vanished with approximately $3 million, leaving a trail of worthless tokens behind.
2. Baller Ape Club NFT Scam (2022)
The Baller Ape Club’s creators rode the NFT wave, selling hyped-up digital collectibles. After raising $2.6 million, they disappeared. The lure? Hyper-stylized art and promises of future perks that never materialized.
3. Frosties NFT Scam (2022)
Frosties NFTs promised gaming perks, giveaways, and long-term utility. Instead, the anonymous founders disappeared with $1.1 million, proving even projects that claim roadmaps and expansions can be smoke and mirrors.
How to Stay Safe (Actionable Tips to Protect Your Investments)
1. DYOR (Do Your Own Research):
Investigate the team, read their whitepaper, examine tokenomics, and check their public communication channels. If something feels “off,” trust your instincts.
2. Verify Audits:
Only consider projects audited by reputable firms. If there’s no audit report, you’re essentially taking their word that the code is safe.
3. Check Token Distribution:
Use on-chain analytics tools to see how tokens are allocated. A fair and well-distributed token supply is a green flag; heavy concentration in a few wallets is a big red one.
4. Be Cautious with Meme Tokens:
Meme coins (e.g., Doge variants, Shiba spin-offs) can be fun but come with higher risk. Ensure there’s a real product roadmap and solid fundamentals.
5. Engage with the Community:
Join the project’s Discord, Telegram, or Twitter spaces. Ask direct questions about the team’s plans, long-term goals, audits, and security features. Sketchy responses or evasiveness are clear warnings.
6. Leverage DeFi Safety Tools:
Use resources like RugDoc.io or GoPlus Security to quickly screen tokens for suspicious activity or code.
Pro Tip: Never invest more than you can afford to lose. Diversification and cautious allocation can minimize the damage if something goes wrong.
What It All Means for DeFi Investors
DeFi’s openness creates opportunities for innovation and profit — but it also invites fraudsters. To thrive in this environment:
• Don’t Chase Hype: Popular projects draw attention from scammers. Always verify claims.
• Expect Stricter Oversight: With rising scams, regulators are eyeing DeFi more closely. Future regulations may offer investors more protection.
• Stay Educated: Follow reputable crypto analysts, read trusted news sources (e.g., CoinDesk, CoinTelegraph), and keep your security knowledge up-to-date.
By understanding the landscape and practicing due diligence, you’re already ahead of most newcomers who buy in blindly.
Final Thoughts (One Last Piece of Advice)
DeFi can feel like a gold rush, but it’s also a minefield of scams. The good news? Knowledge is your best defense. By taking the time to verify claims, scrutinize tokenomics, and demand transparency, you equip yourself with the best possible armor against rug pulls.
Got scammed in a rug pull? Share your experience below. We’ll update this guide with real-world lessons to help others stay safe.
References
1. CoinTelegraph (2024). DeFi Rug Pull Surge Reveals More Complex Crypto Scam Strategies.
2. Solidus Labs (2022). What is a Rug Pull? DeFi Scams Explained.
3. Plisio (2023). Rug Pulls: A Guide to Recognizing DeFi Scams.
4. CoinGabbar (2024). How to Avoid Rug Pulls and Protect Your Investments.
5. Finance Magnates (2022). How to Spot and Avoid DeFi Rug Pulls.
$BTC $ETH $BNB
#RugPull #BTCReclaims101K

The cryptocurrency market is full of opportunities for growth, but it also faces significant risks, especially when it comes to meme coins. One of the most dangerous of these risks is rug pulls, a scam where project developers disappear with investors’ money after collecting it. As meme coins have grown in popularity, so have these scams, making it imperative for investors to understand this type of scam and how to avoid it.