Martin Shkreli’s Crypto Loses 90% of Value After Major Wallet Dumps Tokens

“Pharma Bro” Martin Shkreli’s cryptocurrency crashed 90% on Friday after a wallet that appeared to belong to Shkreli sold more than 160 billion tokens.

The coin, called “Martin Shkreli Inu” has rallied a bit but is still 55% below its price on Friday morning. Shkreli, through a Discord account believed to be run by him, said Bloomberg “I got hacked” when asked about the bulk transfer.

The Martin Shkreli Inu coin is linked to Shkreli’s “Druglike” Web3 project, which he described as a software platform for people interested in “early-stage drug discovery projects.” Shkreli is best known for raising the price of a life-saving drug by 4,000%. He was sentenced to prison on a separate matter after being convicted of securities fraud. In January, a federal judge slapped Shkreli with a lifetime ban from the pharmaceutical industry. It is not clear whether his new project violates this prohibition, although Druglike states that it is “not a pharmaceutical company” nor does it engage in drug development.

Since its debut, Martin Shkreli Inu has been an especially volatile cryptocurrency. Even with the drop, he has gained 198% since his debut. And Friday’s fall was not the first. On July 27 and 28, the value of cryptocurrencies plummeted 65%, before regaining ground.

While Shkreli claimed a hack, he was criticized by other big names in the crypto world when news of the price drop spread. Billy Markus, one of the founders of Dogecoin, via Twitter, compared the crash to last year’s infamous Squid Game crash.

“This is the most shocking thing since the Squid game sheet,” he wrote.

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In 2015, Shkreli was CEO of Turing Pharmaceuticals and raised the price of Daraprim, a drug that treats a specific parasitic infection that is particularly threatening to people with compromised immune systems, such as those with HIV/AIDS, to $750 from $13, 50 per tablet. Three years later, a federal court sentenced him to seven years in prison after finding him guilty on three counts of securities fraud. Shkreli was accused of defrauding investors out of millions of dollars given to his by two of his hedge funds, and then swindling cash and stock from another biotech company he founded to pay those investors.

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