Ethereum News Today: Pixel Vault CEO Removed Over Alleged Rug Pull and Token Manipulation

Pixel Vault, once a key figure in the NFT space, has dismissed its CEO, Sean Gearin (@gfunkera86), following serious allegations of self-dealing and a rug pull. The board announced the removal on X (formerly Twitter), stating Gearin’s actions are under formal review. The controversy centers around the MetaHero universe and its associated tokens—$GG, $PUNKS, and $POW—where users reportedly lost significant value. It is claimed that the former CEO orchestrated dubious token swaps, pushing $PUNKS holders to trade their tokens for $GG at market lows, ultimately capturing 87% of the $PUNKS supply [1].

The situation escalated with a high-profile auction of 16 CryptoPunks, which fetched 930 ETH, or about $2.4 million. The funds were expected to fuel Pixel Vault’s ecosystem and incentivize developers and gamers. However, community members allege the proceeds were instead used for speculative trading on ByBit and ended up being lost, leaving investors with nearly worthless $GG tokens [1]. One social media post suggested Gearin pocketed the ETH from the auction, leveraged it on the exchange, and lost the entire sum. The community is left questioning how over $100 million in funds, including venture capital, could disappear with minimal returns [1].

Further complicating matters was the setup of a private loan using $PUNKS as collateral, allowing Gearin to borrow ETH and potentially inflate auction prices. This move intensified accusations of manipulation and eroded trust. Despite attempts by Gearin to frame $GG as a token with long-term upside, community leaders and X users have labeled the events as one of the most transparent rug pulls in crypto history. The CEO claimed market conditions and personal errors were to blame for the crash in $GG’s value, while $PUNKS lost all intended utility [1].

Operations reportedly shut down within weeks, with major wallets drained and remaining NFTs sold off. Community accounts also noted that messages from the former CEO were abruptly halted. A tool named PunkPredictor estimated the CryptoPunks were sold for 950 ETH, a figure criticized within the NFT space for potentially undervaluing the assets [1]. The incident has sparked broader discussions on governance and accountability within the fast-moving NFT and crypto industries.

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[1] Pixel Vault CEO Ousted After Rug Pull Scandal Rocks NFT World https://www.livebitcoinnews.com/pixel-vault-ceo-ousted-after-rug-pull-scandal-rocks-nft-world/