The SDT incident has shaken the crypto community — and it’s not just about losses, but about where market risk ends and criminal fraud begins.
What Happened
Timeline: Liquidity was added right as the token launched. Within 24 seconds, liquidity was pulled, leaving only 21.6 USDT from a 50,000 USDT entry. Price instantly collapsed to zero — a textbook flash harvest.
First Trial: Guilty of fraud — sentence: 4 years 6 months in prison + fines.
Second Trial: Scheduled for May 20, 2024. Defense argues: pool withdrawals were allowed by platform rules, contract was genuine, all participants were high-risk traders.
Core Debate: Was this just “market risk” where everyone knew the gamble, or outright theft dressed as trading?
3 Key Legal Takeaways
Platform rules ≠ free pass — If intent to scam exists and victims suffer severe losses, the law will act.
On-chain transparency ≠ innocence — A public contract doesn’t hide fraudulent intent or premeditated traps.
Experienced victims are still victims — The law protects all investors, regardless of trading experience.
Spotting “Liquidity Pull” Scams
No liquidity lock or time-lock — easy for devs to vanish after launch.
Contract permissions still held — can mint tokens or change taxes anytime.
Trend-jacking names — copycat branding with unrelated contracts.
Overhyped marketing pre-launch — zero audits, vague whitepaper, explosive but short-lived price spikes.
Suspicious trading patterns — concentrated volume, single-point pumps, rocket-like candles.
If You’re a Victim
Secure evidence — transaction hashes, charts, contract snapshots, announcements, chat logs.
Report everywhere — police, platform, and third-party evidence notarization.
Organize safely — avoid scammy “rights protection groups,” stick to official channels.
Stay compliant — if funds are sent to you, explain and cooperate to avoid legal trouble.
Final Word
Crypto is no longer a “wild west” where anything goes. Regulations are tightening, and survival means compliance, transparency, and discipline.
Don’t think the law’s scythe can’t cut you — in the end, you might only be cutting yourself.
$BNB