CDS Crypto News Reddit Takes Action Against Moderators Accused of Insider Trading with MOON Tokens
Crypto News

Reddit Takes Action Against Moderators Accused of Insider Trading with MOON Tokens

On October 18, Reddit officially shuttered its blockchain-based points program, which had integrated the use of specific cryptocurrency tokens native to individual subreddits.

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Reddit Takes Action Against Moderators Accused Of Insider Trading With Moon Tokens

Crypto News– Cointelegraph has verified that Reddit’s r/CryptoCurrency community has removed two moderators who were discovered to be involved in insider trading of MOON tokens.

Reddit Takes Action Against Moderators Accused of Insider Trading with MOON Tokens

Reddit Takes Action Against Moderators Accused Of Insider Trading With Moon Tokens

This latest development is in line with the findings presented in our previous report on October 20. That report unveiled a compelling discovery: at least three wallets connected to moderators within Reddit groups had undertaken significant sell-offs of MOON tokens, amounting to hundreds of thousands of dollars in value.

What makes this revelation even more noteworthy is that these transactions occurred on October 18, just moments before the official announcement regarding the closure of the blockchain-based points program. It’s crucial to emphasize that this program was tailored to utilize distinct cryptocurrencies that were native to each unique community within Reddit.

The market sell-off initiated by these three wallets was brought to attention by on-chain analysis accounts on X (formerly Twitter), such as Lookonchain. The Reddit moderators had been privy to the impending closure of the blockchain-based points program an hour before the official announcement. Consequently, the Reddit announcement led to an 85% drop in the token’s value, plummeting to $0.0198. Nonetheless, two of the moderators managed to execute their sales at an opportune moment, yielding more gains than the uninformed community members.

2 mods got removed, as they sold their Moons before the official announcement from Reddit: u/rider_of_the_strom u/McGillby.

Reddit Takes Action Against Moderators Accused Of Insider Trading With Moon Tokens
Sources:cointelegraph

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