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Martin Shkreli, better known as Pharma Bro, said he was involved in the creation of the DJT token, a Solana-based meme coin that claimed to have ties to the Trump family.
The fiasco started after crypto analytics platform Arkham Intelligence initiated a $150,000 bounty for anyone who could prove the identity of the DJT token creator.
This was likely done in response to a potential $100 million bet made between pseudonymous crypto trader GCR and Shkreli.
100 million
if you don’t have 100 million, as much as you’re willing to bet
— GCR (@GiganticRebirth) June 18, 2024
On-chain sleuth ZachXBT submitted his proof, said so publicly on Twitter, and minutes later said he was contacted by Shkreli.
Within an hour of contacting ZachXBT, Shkreli hosted Twitter Spaces, a feature that allows users to host live audio interactions in a group environment, where he proclaimed that he is the creator of the DJT token.
But pseudonymous crypto trader GiganticRebirth, commonly referred to as GCR, has been silent since sending a tweet last night about the broader crypto market sentiment. Before that, GCR clarified that they would consider the bet settled if “Donald J Trump himself, says he launched a meme coin himself.”
the only way this is “real”, is if Donald J Trump himself, says he launched a meme coin himself
i’m well aware there is a cabal strategy to bribe people in the Trump orbit to pretend they had something to do with this, when in reality a cabal of crypto whales did a presale and…
— GCR (@GiganticRebirth) June 18, 2024
Shkreli said he collaborated with Barron Trump, Donald Trump’s youngest son. Further, he said that he can no longer guarantee that the Trump family will publicly endorse the token. Lastly, Shkreli claimed that he has evidence that supports his claims.
However, this claim appears partially true at best, as a screenshot shared by Skhreli with ZachXBT indicates that Skhreli received information from an insider who claims that they created the token for Trump.
Since there doesn’t appear to be a recording of the Twitter Space, there are now contradictory accounts of what Shkreli actually admitted to doing.
One user claimed he admitted to insider trading, launched it with a friend, and wants to see the token go to zero. Another user recounted that he said he was the one to launch the token, but “can no longer guarantee Trump family will publicly support it.”
Even before there was a bet, crypto traders were skeptical of the DJT meme coin’s legitimacy.
Decrypt reached out to the Trump campaign but hadn’t yet received a response at the time of publication.
Trump has Shkreli’s “unmitigated endorsement”
It’s not implausible that the “Pharma Bro” would have launched a token in connection with the 45th president—he’s a known Trump supporter.
In 2016, before the upcoming U.S. presidential elections, Shkreli fully endorsed Donald Trump.
“Trump has my unmitigated endorsement. It was hard won and I was skeptical. The entire Trump family convinced me,” Shkreli tweeted back in 2016.
But his potential connection with the DJT meme coin might now add to his existing legal issues.
Shkreli was convicted in 2017 on two counts of securities fraud and one count of conspiracy for which he was ordered to pay $7.4 million in fines. Later, in a civil antitrust lawsuit, Skhreli had to repay victims to the tune of $64.6 million. He was released from prison in May 2022 on parole.
Just last week, a federal judge in Brooklyn ordered Shkreli to stop sharing Wu-Tang Clan’s one-of-a-kind album “Once Upon a Time in Shaolin” after PleasrDAO filed a lawsuit against him.
Now, he may have created more problems by admitting to having ties to the DJT meme coin. Attorney and Cinneamhain Ventures partner Adam Cochran tweeted that Shkreli might have inadvertently violated the terms of his parole.
“Shkreli’s 3-year parole terms require him to give full financial statements, and to avoid “any self-employment involving access to client money or investments” (as well as avoiding other crimes) So either he goes to jail for fraud, or he managed an investment opportunity on behalf of Barron and goes to jail for violating terms of parole.” Cochran wrote.
Cochran further noted that the terms might have changed, but that it’s unlikely and that the terms of his parole are still active.
Additionally, he added, if Shkreli still resides in New York, then he could also be in violation of New York laws, as people in the state are banned from issuing a digital currency without a BitLicense.
And if he is still New York based he is technically dealing in currency without a license as a BitLicense would apply to any New York resident issuing, controlling or administrating a digital currency.
That definition is more than broad enough to apply too. 😅 pic.twitter.com/0Y35fEuitA
— Adam Cochran (adamscochran.eth) (@adamscochran) June 19, 2024
The back and forth has not convinced traders, who are largely speculating that the Trump family is not affiliated with the token.
92% of Polymarket participants, a prediction market platform, have wagered “No” on the poll, which now has a pool of $2.12 million. And the betting is still open because the rules for the wager dictate that there needs to be proof that “Donald Trump himself launched the coin, or a member of Trump’s family/staff did so with his consent.”
Meanwhile, DJT has suffered a massive blow, as its price has now tanked by more than 60% in the past 24 hours. In stark contrast, the vast majority of the PolitiFi tokens in the top 500 by market capitalization are trading in green.
Edited by Stacy Elliott.
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Source: https://decrypt.co/236090/martin-shkreli-djt-solana-meme-coin-barron-trump-gcr-bet
