The co-founder of the Artificial Intelligence (AI) crypto project Zerebro has been accused of faking his death and dumping on investors after recent reports claim the developer pulled the stunt as an “exit liquidity strategy.”
Crypto Developer Allegedly Dies On Livestream
This week, the crypto community was hit with the shocking news of the apparent death of a developer due to mental health issues. Reports online announced the passing of Zerebro’s co-founder, Jeffy Yu, who had seemingly committed suicide during a Pump.fun livestream on May 4.
The video, which was later shared on X, showed the project’s co-founder smoking a cigarette while taking his own life with a gun. Seemingly confirming his death, an obituary for Yu was published on the obituary platform Legacy, claiming he died at the age of 22.
Yu’s obituary on Legacy. source: Lookonchain on X
On Sunday, Yu introduced the concept of “Legacoins,” a term derived from “legacy memecoin,” in a Mirror blog post. As he explained, these tokens don’t promise returns, as they are not investments, but are an “interactive performance art” where “the chart is the canvas / you are the art.”
After his alleged passing, Zerebro’s official X account and Yu’s X account were deactivated. In a scheduled post, he stated, “If you’re reading this, it’s because my 72 hour deadman’s switch triggered so i’m not here, at least physically.”
The May 6 announcement unveiled Yu’s “final art piece,” the Solana-based LLJEFFY legacoin. The developer expressed his discontent with money, stating that the token was “my burning ritual / my hatred for money made manifest.”
DexScreener data shows that LLJEFFY’s price skyrocketed over 1,000% after the news spread. However, the cryptocurrency’s price quickly plummeted by over 90%, resulting in losses for many investors.
LLJEFFY’s price action over the past 24 hours. Source: DexScreener
On-chain analytics firm Lookonchain reported that the news of Yu’s death “caused the price of $LLJEFFY to soar and plummet in a short period, causing some traders who FOMO bought to suffer losses,” adding that one trader lost $93,000 in one hour.
Nonetheless, crypto community members started to question whether the co-founder had faked his death, as online reports suggested otherwise based on suspicious on-chain activity.
A ‘Calculated’ Exit Scam?
According to Bubblemaps’ timeline, the LLJEFFY creator wallet and several linked wallets began to trade and burn the token after Yu’s alleged suicide rumor started on X, with one of the addresses selling over $170,000 worth on ZEREBRO through multiple transactions by Tuesday afternoon.
On Wednesday, Lookonchain shared that a wallet likely linked to Yu sold 35.55 million ZEREBRO for 8,572 SOL, worth around $1.27 million, on Tuesday night. The address then transferred 7,100 SOL, valued at $1.06 million, to the LLJEFFY developer wallet “G5sjgj.”
Crypto influencer Irene Zhao also affirmed to have spoken to someone familiar with the matter, who confirmed that Yu had faked his death and was fine. Meanwhile, an X user claimed the developer was alive, and the crypto industry had “just witnessed its first pseudocide exit strategy.”
Per the post, “He sent a detailed letter directly to an early investor who round tripped it all,” with no remorse, “just a calculated exit.” The alleged letter states that Zerebro’s developer deliberately created a video simulating shooting himself, arguing that it was his “only viable exit” from constant harassment, blackmail, and threats after being doxxed.
He explained that publicly stepping away would have tanked the price of the ZEREBRO and OPAIUM projects, another reason for the stunt. The letter closes by stating that Yu is “physically and mentally sound,” and not seeking assistance.
Soon after, the Legacy obituary was deleted, fueling the speculation that Yu’s passing was false. As Lookonchain noted, “The official Zerebro team has made no public statement, and it remains unconfirmed whether Jeffy Yu is actually dead or faked his death. Be cautious with the news and don’t FOMO trade.”
Solana (SOL) trades at $147.65 in the one-week chart. Source: SOLUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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