Thursday, April 18, 2024

Crypto Influencer Arrested in Connection with $1.2 Million MEV Rug Pull.

On March 20, American law enforcement detained Robert Robb, also known online as “pokerbrat,” a renowned MEV-bot engineer connected to a $1.2 million rug pull scam.

On March 21, Robb’s arrest became public knowledge after cryptocurrency expert ZachXBT suggested a potential link to the purported scam.

MEV Rug Pull Scam of $1.2 Million and Prior Criminal Record
When the blockchain security expert revealed Robb’s criminal cryptocurrency operations in December 2023, the case gained attention for the first time.

According to reports, Robb was able to withdraw the money from investors because he had promised to create automatic trading bots. According to ZachXBT, Robb was a MEV bot scammer who vanished with investor money after failing to fulfil his commitment.

The term “MEV” describes the profit that miners stand to gain monetarily from rearranging, front-running, or adding transactions to a block. This might happen because of the way transactions are handled and added to a blockchain, especially in applications related to decentralised finance (DeFi). MEV bots are automated programmes created to swiftly detect and carry out trades in accordance with the block transaction order in order to take advantage of this possible benefit.

Zach’s allegation also exposed a number of justifications Robb had given for the project’s continuous delays, which eventually infuriated investors.

Robb made a variety of justifications after waiting for the project updates for around sixty days, including COVID setbacks, exchange problems, extortion, family troubles, and health problems.

Additionally, it was apparently the MEV engineer’s intention to ban anybody from the project’s chatroom who inquired about the reasons for the delay.

Zach posted a thread revealing Robb’s prior criminal record, which included thefts and scams dating back up to 20 years, highlighting the seriousness of these accusations.

Robb entered a guilty plea in 2002 to defraud investors out of more than $4 million, according to the charges. In 2007, Robb received a three-year prison term for defrauding more than 10 Colorado victims.

Bitcoin Fraud Continues Due to Regulatory Omissions

The cryptocurrency community is still waiting on Henderson Police to provide all the specifics surrounding Robb’s arrest; however, ZachXBT’s claims indicate Robb was detained in connection with the purported $1.2 million rug pull fraud.

The entire case demonstrates how con artists are lurking behind screens, waiting to take advantage of legal loopholes in the cryptocurrency industry.

A chain analysis analysis claims that between 2021 and the present, frauds and fraudulent activities have cost the cryptocurrency industry about $87 billion.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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