Clucoin Founder Gambled Away Funds

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Clucoin Logo/Homepage

CluShare launched as a hyper-deflationary token with a smart staking system that promised to reward holders and contribute to charity with each sale. The token incorporated a CLU wallet with 1 trillion tokens as part of the distribution pool, and CLU shareholders share 5% of each sell action to incentivize holding and discourage selling. CluShare emphasizes its commitment to charity, stating that part of its mission is to help charities worldwide. The community is rewarded with a 5% return each time someone sells, encouraging users to hold and earn. Despite these positive aspirations, a recent revelation from the founder, DNP3, disclosed a severe gambling addiction that led to the misuse of investor funds. The founder expressed deep remorse, announced financial ruin, and is seeking help for recovery. CluShare had initially pledged charitable donations but faced setbacks following the founder's admission of mismanagement.

This is a global/international case not involving a specific country.

About Clucoin

"TOGETHER WE CAN CHANGE THE WORLD Hyper Deflationary Token with Smart Staking System. Hold, earn and help others in need."

"Our model rewards holders and saves money for charity each time someone sells. Our tokenomics include a CLU wallet with 1T, which is part of the distribution pool. CLU shareholders share 5% of each sell action. This is done to discourage selling and reward holders."

"CluShare is the first token designed with the users and a charity system built straight into its core. We've built a system designed to protect against whales, encourage holding and help charities around the world."

"CluShare is the first token designed with the users and a charity system built straight into its core. We've built a system designed to protect against whales, encourage holding and help charities around the world." "Part of CluShare's mission is to help charities around the world."

"CluShare holders are rewarded with 5% return each time someone sells. HOLD & EARN. Our system is built off safemoon protocol which is built to protect investors and discourage selling. Members who purchase during the pre-launch will earn an extra 1% of CLU per transaction If you need help with a purchase be sure to join our discord for support."

"The CluCoin cryptocurrency was officially released on May 20. DNP3 told Newsweek: "Our goal is to improve all of our community members' lives, while also making the world a better place through charitable donations. We donate all money that is earned from our charity wallet reflections to a charity of the CLU [CluCoin] Community's choice.

"While [we are] not a charity, we feel it is also important to have a very strong community. For that reason we established a community wallet with equal distribution. We're giving away $500,000 to a random community member for example."

At initial time of reporting, DNP3 said CluCoin didn't yet have any official charity partners. The founder has since told Newsweek that CluCoin has donated $125,000 to the Save the Children Organization and the company has been "talking to multiple prospects."

The founder of CLUCOIN just quit, while admitting he gambled all investors funds away. by gnarley_quinn in CryptoCurrency

"There is no easy way to deliver this news and this is by far one of the toughest messages I’ve ever had to deliver in my life.

Over the last year I got incredibly addicted to gambling. Every dollar I could find I would put into Stake in hopes of winning big. Even when the big wins did happen it wasn’t enough. Eventually I lost everything. In addition to my own life savings, I also irresponsibly used investor funds to try and “get my money back” from the casino which was wrong for so many reasons.

To all of my friends, family and everyone who believed in me.. I’m so deeply sorry. There aren’t words to describe the level of shame & guilt I feel. I can no longer live in this dark world and this is my attempt to break free.

I am now completely broke both financially and spiritually. My sense of trust in myself is compromised.

I’m working with a help group to start the path to recovery.

I will create a separate tweet which will have next steps for each projects I was involved with including CLU, Xenia, Gridcraft & Goobers.

I am sorry that I betrayed your trust. I am sorry that I did not live up to my values of integrity. I am sorry that I let you all down. I am sorry."

"Addiction made me do things I had no idea I was capable of. I’ve spent years building a brand off integrity and serving others. Addiction literally changes your mind and body. I feel so much remorse for the trust of those I’ve betrayed and will miss our friendships."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

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The Reality

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• When the service was actually started (if different than the "official story").
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• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Clucoin Founder Gambled Away Funds

Date	Event	Description
June 29th, 2021 9:21:32 AM MDT	Project Launched	A press release on the newly launched token is release.
January 3rd, 2023 1:06:00 PM MST	Tweet About Gambling	The final tweet apology on having gambled away user's funds.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

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Ultimate Outcome

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Total Amount Recovered

There do not appear to have been any funds recovered in this case.

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Ongoing Developments

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Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.