Crypto sleuth ZachXBT faces backlash over $3.87M meme token sales and alleged conflicts
ZachXBT, a well-known crypto investigator, has come under scrutiny after selling around 16,059 SOL—worth roughly $3.87 million—in unsolicited meme tokens. The investigator, who has exposed over $500 million in fraud across the industry, now faces questions about potential conflicts of interest and transparency.
The controversy began when an anonymous developer sent 50% of the supply of a meme token called $ZACHXBT directly to his wallet. Critics also noted that some alleged donors to his 2023 legal defense fund were never later investigated by him. The fund itself received contributions from major players like Binance, Bybit, and Paradigm, as well as wallets linked to Hyperliquid.
The most debated issue involves Hyperliquid, which donated 10,000 HYPE tokens (worth up to $600,000) to ZachXBT. After the donation, his critical coverage of the platform reportedly slowed. Separately, Polymarket wallets allegedly made $1.2 million in profits ahead of one of his posts, though no direct connection was proven. Despite the growing discussion, ZachXBT has not publicly addressed the full scope of the allegations in detail.
The case has sparked wider debate about independence in crypto investigations. ZachXBT’s past work remains significant, with over $500 million in exposed fraud. However, the recent transactions and donation patterns have raised concerns about potential biases in his reporting.
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