Ice Poseidon's $500,000 Crypto Scheme Has The Internet In An Uproar

Paul Denino — or Ice Poseidon — knows the highs and lows of the streaming world. Once one of the most popular Twitch streamers, he lost most of his viewer base in a mere matter of months. Though Denino was once beloved for his IRL streams, which sometimes included dangerous acts, he eventually decided his future was in cryptocurrency. While big-name currencies like Bitcoin aren't a terrible investment, certain tokens can crash just as quickly as they appear, leaving investors out of luck and with empty pockets. Unfortunately, that's what happened with CxCoin, the currency that Denino helped found. But where did the money from investors go after the token went defunct? Thanks to a new report from Coffeezilla, fans might have their answer.

Denino initially introduced CxCoin as a community-driven cryptocurrency that he was personally invested in growing and managing. The roadmap for the company promised an NFT marketplace and features specifically marketed towards streamers. However, even though the proposed plans extended well into 2022, it appeared that Denino suddenly stopped working on the project, leaving investors to wonder where their money was and if they'd get it back. Now, a report shows that Denino allegedly took approximately $500,000 from the project with no plans to return it.

Coffeezilla is a YouTuber that investigates online scams, deep-diving into the details of each case and attempting to contact involved parties. He posted a takedown of Denino on Jan. 31, claiming that he received money from his followers in investments, only to keep the money less than 6 months later when the project went dead. Coffeezilla argued that Denino claimed CxCoin was a long-term project that he planned to work on diligently to grow the community, only to mysteriously shut down the project before the "long term" had time to happen.

Coffeezilla talked with Denino about the issue directly, including their conversation in his video. When asked if the buyers deserved to be ripped off, Denino said, "Nobody deserves that." However, when Coffeezilla attempted to get Denino to return the money, Denino replied, "I could give the money back, I have the power, but I'm going to look out for myself. I don't know what else to say, that's just the most honest answer."

Ultimately, Denino said that he received 55%, or $300,000, for approximately two weeks of work to promote CxCoin. When confronted about the morality of his actions, Denino said, "I am doubling down. Do you not agree, though, that some of the responsibility is on people?" He argued that investors should have noticed that the coin was inactive and sold their shares.

Streamers getting involved in cryptocurrency haven't had the best track record. Fans recently blasted FaZe Clan for its promotion of a similar token, Save the Kids. It's unclear if or when Denino will return the alleged profit, and he has declined to comment on the matter just yet.