South Korean L1 Mitosis faces rug pull allegations

South Korean Layer 1 project Mitosis is facing growing accusations of a rug pull, NewsWay reported. The controversy has reignited concerns about the credibility of domestic crypto projects, as the project's founders have been linked to Terraform Labs. The allegations stem from the founders' disappearance from social media since last September and the failure to distribute promised community rewards. Investors who staked tMITO for six months were guaranteed a 2.5x return in MITO tokens or a separate bonus. However, the rewards, valued at around $1.4 million, were not paid out on the scheduled date of March 10. Over this period, the MITO token has plummeted 87% from its peak of $0.30 to $0.03.