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SEC Charges New York Blockchain Engineer Over GME Rug Pull Fraud
SEC Charges New York Blockchain Engineer Over GME Rug Pull Fraud
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Eric Zhu, a blockchain engineer for the Game Coin project (GME), has settled fraud claims with the US Securities and Exchange Commission (SEC). Zhu allegedly orchestrated a rug pull scheme that defrauded investors in the Game Coin token (GME). He will pay nearly $823K if the court approves the commission’s motion for final judgment. The SEC claims that Zhu misappropriated $553K from GME investors by using his role as the project’s blockchain engineer for personal gain. The agency suggests that GME was sold as a security via liquidity pools. This case could be one of the last the SEC handles under Gary Gensler’s term as chair.
