PEPE has been hit by a major internal security and governance controversy after the project’s anonymous lead developer said that around 16 trillion PEPE tokens, valued at roughly $15 million, were removed from the project’s multi-signature wallet on August 24, 2023. According to the statement, the tokens were quickly sent to major crypto exchanges including OKX, Binance, Kucoin, and Bybit and then sold.
Former team members accused in wallet drain
The lead developer alleged that three former team members were behind the transfers. In the statement, the developer said the signers reduced the wallet approval requirement to 2 out of 8 before draining about 60% of the wallet’s holdings. After the transfers were completed, the individuals allegedly deleted their social media accounts and cut ties with the PEPE project.
The incident has renewed concerns around governance standards in meme-coin projects, especially those built around anonymous teams and community-driven momentum. In such cases, control over treasury wallets and signer permissions can become a central source of risk for token holders and the wider market.
Remaining 10 trillion tokens said to be secure
Despite the loss, the lead developer said PEPE will continue moving forward. The statement noted that the remaining 10 trillion PEPE tokens still held in the compromised multi-signature wallet are now believed to be secure. The plan is to move those tokens into a new wallet and eventually burn them all in an effort to leave the project in a more fully decentralized form.
The developer also said some of the remaining tokens may be used to negotiate the purchase of PEPE-related web domains and social media usernames before the final burn takes place. The broader goal, according to the statement, is to position PEPE so it can continue operating and potentially thrive in a more decentralized and anti-fragile structure.
Apology issued as trust comes under pressure
In a public message, the lead developer said they were shocked by what happened and apologized for the fear, uncertainty, and potential losses caused to community members. For PEPE, the episode is more than a token theft claim—it is also a test of internal trust, wallet governance, and the project’s long-term resilience. How the team handles the wallet migration, token burn, and next phase of governance will likely shape market confidence from here.