Kishu Inu creator indicted in Chicago over alleged $9 million crypto 'rug pull'

CHICAGO - An Arkansas man who created a cryptocurrency that once reached a market value of more than $1.6 billion has been indicted in Chicago in connection with an alleged $9 million fraud scheme.

Kishu Inu fraud case charges

Alexander Sisemore, 28, of Fayetteville, Arkansas, is charged with three counts of wire fraud, according to the U.S. Attorney’s Office for the Northern District of Illinois.

Each wire fraud charge carries a maximum sentence of up to 20 years in federal prison.

‘Join the moon mission’

The backstory:

Sisemore, also known as "Kishu man" and "Kimbo," founded Kishu Inu, a digital asset that launched in 2021.

The indictment alleges Sisemore and others made false claims to investors to maintain Kishu Inu’s liquidity and increase its price.

Many of the alleged statements were made through social media platforms, including Telegram, Twitter, Facebook and Reddit.

"Join the moon mission," the token's website read, according to the indictment.

Prosecutors say Sisemore and others secretly gave themselves a large quantity of tokens when the asset was created. They allegedly sold those tokens while making statements intended to support the cryptocurrency’s value.

The alleged scheme, commonly known as a "rug pull," generated about $9 million in personal profits for Sisemore, the indictment states.

What's next:

An arraignment in federal court in Chicago has not yet been scheduled.

What you can do:

The FBI’s Chicago Field Office is seeking to identify people who invested in Kishu Inu. Investors or anyone with relevant information can complete the FBI’s online form.

The Source: The information in this story came from the U.S. Attorney’s Office for the Northern District of Illinois.