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Xeggex, a low-key altcoin haven, vanished overnight while some funds may have suspiciously slipped away.
Their CEO's account was "hacked," they said - right before the database mysteriously "corrupted" and users lost access to everything.
Strange timing for technical difficulties, coming just hours after February's massive market dump.
Meanwhile, millions in altcoins reportedly remain in wallets connected to the exchange, inaccessible to many of their owners.
The Xeggex situation bears striking resemblances to previous exchange collapses.
Community investigators have alleged connections to Paul Vernon - the figure behind Cryptsy's collapse in 2016, who was later indicted by the U.S. Department of Justice for allegedly stealing user funds.
Paul Vernon didn't just abandon Cryptsy - he gutted it. After learning about the exchange's receivership in April 2016, he remotely pillaged its servers, snatched the customer database with all funds, then torched the digital evidence on his way out.
The similarities continue with Altilly, an exchange that similarly suffered a reported "hack" in 2020, followed by database corruption claims that left users without access to their funds.
From Cryptsy to Altilly to possibly Xeggex, a pattern emerges: exchanges suddenly face technical issues, customer funds become inaccessible, and recovery promises stretch indefinitely while blockchain analysis tells a different story.
When exchanges collapse, what really happens behind the technical explanations?Read more »
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Research of the Week
The Ponzi Rotation: How the Same Money Pumps Every Cycle
Every cycle, crypto convinces you that this time is different. But the truth? It’s the same insiders, the same money, and the same musical chairs—just with new tickers. Retail thinks fresh capital is pouring in, but behind the scenes, it’s just the same whales recycling their bags, pumping, dumping, and rotating to the next grift.The playbook is flawless—for them, not you. First, they load up on tokens before anyone is paying attention. Then, they manufacture hype: narratives get pushed, influencers get their talking points, and suddenly, everyone is shilling the “next big thing.” By the time retail catches on, the insiders have already front-run the liquidity. You’re not early—you’re the exit.When the momentum slows, the rotation begins. The whales don’t leave, they just reposition. They dump inflated assets onto late buyers, but instead of cashing out, they funnel profits into the next trend—whether it’s AI tokens, real-world assets, or whatever buzzword the cycle demands. The same money moves, the same insiders win, and the same bagholders lose.Ever wonder why certain influencers magically “discover” new trends at the perfect time? They’re not discovering anything—they’re getting the memo before you. It’s a closed loop, and unless you’re on the inside, you’re just another mark.So how do you survive the Ponzi rotation? Follow the wallets, not the words. When influencers start hyping a new sector, check who actually bought early. If the same wallets that dumped the last trend are loading up, they already know what comes next. And if you think you’re ahead of the game? Ask yourself who told you to play in the first place.Crypto doesn’t need new money to pump. It just needs a fresh round of believers. Don’t be the one left standing when the music stops. Memes and Videos This "Good Boy" Couldn't Stop Hacking CelebritiesPlug Walk Joe didn’t just hack accounts—he hacked his way into infamy, flipping stolen crypto and SIM swaps into a high-stakes cybercrime empire. From celebrity extortion to breaching the phones of the rich and famous, he played the game until the FBI played him. Now, after years behind bars, his story is just another reminder that cybercrime pays—until it doesn’t. Source: Crumb Source: lynk0x
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