A federal grand jury in the Northern District of Illinois indicted Kishu Inu founder Alexander Sisemore on October 6, charging him with three counts of wire fraud, case number 1:26-cr-00525.

The indictment states that he is also known as Kishu Man and Kimbo, and is the founder who created the token on-chain around April 2021. Prosecutors allege that he made false statements to investors to maintain liquidity and price while secretly selling the tokens allocated to him at the project's launch. The indictment claims he personally profited over $9 million from this. Another individual referred to as Individual A reportedly profited around $800,000.

The false statements listed by prosecutors include: the project was a fair launch, there were no team tokens, and the founders only held 1.7%. The indictment claims Sisemore actually secretly obtained about 6% of the supply and sold it while making contrary public statements. Transactions went through multiple wallets and mixers. One identified transaction was the sale of approximately 47.4 trillion tokens on Gate.io on October 27, 2021, in exchange for 39,308 Tether coins.

He is 28 years old and resides in Fayetteville, Arkansas. Each count of wire fraud carries a maximum penalty of 20 years in federal prison. A hearing in the Chicago federal court has not yet been scheduled. Fox reported that the token's market cap once exceeded $1.6 billion. The FBI is seeking investors of Kishu Inu and other informants. All these are allegations and have not yet been proven in court.

The scheme spans from the creation in April 2021 to at least October 2023. The indictment specifies that the purpose of the false statements was to maintain liquidity, inflate prices, and sell off their pre-allocated positions. The wire fraud charges correspond to interstate transfers and transaction instructions, not a separate securities registration case.

The buyers are holders who purchased under the fair launch narrative, while the sellers are the founders who allegedly sold off their secretly allocated positions. The event is driven by the criminal indictment, not a public market crash announcement. The over $9 million profit, if the allegations are proven, comes from the launch allocation rather than from building positions in the public market. The narrative benefited buyers at the time, while the liquidity and investors now being sought for information are under pressure. The indictment does not state whether the token can still be traded or if a freeze order has been issued.

Source: Public Information