From the U.S. Attorney:
CREATOR OF DIGITAL ASSET KISHU INU INDICTED FOR ALLEGEDLY OPERATING $9 MILLION “RUG PULL” FRAUD SCHEME
CHICAGO — The creator of the digital asset Kishu Inu has been indicted in federal court in Chicago for allegedly operating a $9 million “rug pull” fraud scheme.
ALEXANDER SISEMORE, also known as “Kishu man” and “Kimbo,” founded and created the digital asset Kishu Inu, which launched in 2021 and subsequently reached a market capitalization of more than $1.6 billion.
An indictment returned Tuesday in U.S. District Court for the Northern District of Illinois alleges that Sisemore and others made materially false statements to investors in order to maintain Kishu Inu’s liquidity and increase its price in the cryptocurrency market while surreptitiously selling a large quantity of Kishu Inu tokens that Sisemore and others secretly allocated to themselves at the time the asset was created.
Many of Sisemore’s alleged misrepresentations and falsehoods were made to actual and potential investors on social media applications, including Telegram, Twitter, Facebook, and Reddit.
The alleged fraud scheme—known colloquially as a “rug pull”—generated personal profits for Sisemore of approximately $9 million, the indictment states.
The indictment charges Sisemore, 28, of Fayetteville, Ark., with three counts of wire fraud, each of which is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Ryan Whalen, Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Elie Zenner and Matthew Getter.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The FBI Chicago Field Office is seeking to identify investors in Kishu Inu. If you invested in Kishu Inu or have information relevant to this investigation, you are encouraged to complete this online form. Responses are voluntary but may be useful in the federal investigation and to identify potential victims.
