As I told in another topic, the phrase is hardly intelligible. Neither "катаясь", nor "кутаясь" fit the situation, as well as "жертвую".

"Кутаться" can refer to clothes only, while "жертвовать собой" obviously implies heroism (to sacrifice oneself in the name of high principles or something like) and never anything negative.

My proposal in previous topic was "Утопая во лжи, я гублю себя", which is not literal translation but keeps a sense instead.

Or maybe "Ложь затягивает и губит."