On Wednesday, American Youtuber and "internet detective" Coffeezillaa published a recorded interview of himself and disgraced Youtuber Paul "Ice Poseidon" Denino. During the session, Denino allegedly confirmed that he made off with $750 thousand worth of his investors' money through rug pulling a crypto project dubbed "Cxcoin."
The ordeal started last July, when Denino created the Cxcoin for streamers and content creators on the Binance Smart Chain. Denino then allegedly promoted the coin to his community of followers, telling them that "don't worry, no rug [pull] here all the money is locked [in a smart contract] lol, my wallets are pinned." However, Denino abandoned the project just two weeks later, saying:
"It's pretty simple. Basically, the coin was inactive for a long time; the crypto market is crashing, and obviously, I'm not going to let $300 thousand [locked] in the liquidity pool go to waste, so I took what wasn't necessary in there."
In addition to the $300 thousand taken from the liquidity pool, another $200 thousand from the Cxcoin token presale and $250 thousand from a marketing wallet are reportedly missing, yielding a total of $750 thousand worth of investors' funds. Denino allegedly returned a small portion of the misappropriated funds to the smart contracts after public outrage. However, the majority of the capital has not been returned. Later on, when asked by Coffeezillaa as to how much money he made off the "scam," Denino cited 55% of the money going to himself, while 45% going to developers, leaving him with a cut of approximately $300 thousand.
Regarding the whereabouts of the funds, Denino allegedly purchased a Tesla only days after the capital went missing. With comments on his Twitter account suspended, many users took to Youtube and Discord to voice their dissatisfaction, with Discord user 3840x2160p#3258 writing:
"He lived off donators' money his whole grown life pretty much, then his twitch comeback gets denied, and so since his career is stagnant, he decides to scam his fans and investors."
Ice Poseidon originally rose to prominence as a Twitch streamer playing the fantasy MMORPG Runescape. In 2017, he was permanently banned from the platform after a viewer called in a bomb-threat hoax as he boarded an airplane. During at least one instance in his Twitch streams, Denino allegedly admitted to credit-card fraud while on air.