Crypto Projects Banned Out of the Blue in X's Account Shutdown Spree
Unfiltered Digest:
Cliffnotes:
- Crypto projects like PumpFun and GMGN had their accounts frozen on X on June 16.
- Crypto teams lost both their official and personal accounts in a coordinated takedown.
- Current communication methods for these projects are restricted to Telegram and websites.
- A former member of PumpFun was arrested in the UK for stealing $1.9M in SOL tokens.
The social media giant X took an unexpected swipe at the cryptocurrency world, suspending numerous high-profile accounts without a heads-up on June 16. The crackdown hit popular platforms that facilitated memecoin trading and Web3 services.
Targeted crypto projects, including PumpFun, BullX, and GMGN, suddenly found their accounts deleted out of nowhere. X hasn't provided a reason for these moves yet.
This sudden attack sent shockwaves throughout the crypto market, particularly since certain projects were preparing major launches.
major Crypto Platforms Caught in a Wide Sweep
The wave of suspensions engulfed several well-known cryptocurrency trading platforms. PumpFun, famous for launching memecoins, was one of the heavily impacted victims of this purge.
BullX and GMGN, both popular Web3 tools, also bid farewell to their X accounts. ElizaOS and Bloom Trading were also suspended, causing chaos among their respective communities.
Crypto expert Patel stated that even team members and founders' personal accounts felt the heat. The broad reach of the suspensions indicates X may have carried out a strategic takedown rather than focusing on individual accounts.
The timing proved especially unlucky for PumpFun, which was reportedly gearing up for a whopping $1 billion token launch.
Losing access to their official accounts leaves these platforms struggling to communicate with their communities. X serves as a crucial platform for crypto projects to connect with their users and announce developments.
With their X accounts terminated, these projects cannot easily reach their established audiences or disseminate essential information about their services. However, most have backup bases on alternate platforms, keeping their websites operational and Telegram groups thriving.
Fake Arrest Claims and Real Legal Troubles
As rumors swirled, false stories emerged accusing PumpFun's founder of getting arrested in NYC, along with claims that the court had ordered the platform's shutdown. These tales, fuelled by lies, were quickly debunked by multiple sources within the crypto community.
The actual facts revealed an entirely different story. A former PumpFun team member was indeed arrested, but it happened in the UK, not the US. This individual stands accused of stealing roughly $1.9 million in SOL tokens from the platform, making it an internal theft case.
The broader repercussions of X's huge crypto account purge are still obscure, raising questions about potential future restrictions on crypto-related content and projects on the platform.
Supplementary Insights:This crackdown could be connected to various reasons, with no official explanation from X yet. Potential breaches of the platform's API usage policies, increased regulatory pressure, and platform vigilance over crypto promotions have been highlighted as possible explanations. The impact could significantly affect upcoming crypto launches, as some believe, while others remain optimistic about the broader market outlook [5][3].
Amidst the unforeseen suspension of numerous cryptocurrency projects' accounts on X, questions surrounding potential future restrictions on crypto-related content and projects have arisen. This sudden attack on major platforms, including PumpFun, BullX, and GMGN, leaves these projects struggling to reach their communities and disseminate crucial information, as their alternative platforms remain their only means of communication beyond X. Contrary to false rumors claiming the arrest of a PumpFun founder in NYC, it was revealed that a former team member was arrested in the UK for stealing SOL tokens, implying internal theft rather than any broader legal troubles.
