ZachXBT is a well-known blockchain analyst. A Solana account linked to him has been accused withdrawing almost $4 million in memecoin funds from an associated project.
This controversy is part of a larger community effort to raise money for the investigative work of this journalist.
ZACHXBT token
Blockchain data shows that an address allegedly belonging to ZachXBT, identified as investigations.sol, received half of the total supply of a memecoin — equating to 500 million ZACHXBT tokens — created by an unknown developer.
The investigations.sol wallet then used the tokens in order to generate liquidity for the ZACHXBT/SOL pair. They later withdrawn approximately 91,000,000 ZACHXBT and 16,059 SOL (around $3.81million) tokens from the liquidity pool.
The data on the chain also shows that a SOL transfer was made to an address associated with crypto market maker Wintermute. This sparked speculation regarding a possible OTC (over-the-counter) transaction.
However, Sonic Labs co-founder Andre Cronje defended ZachXBT’s actions, highlighting his years of unpaid contributions to the crypto space. ZachXBT was entitled to benefiting from the token that had been created under his name. This is because he has a track record in helping fraud victims and assisting projects.
Industry Recognition
ZachXBT expressed his frustration at the recent lack of rewards for his investigation efforts.
He revealed that despite the significant impact of many investigations, such as his investigation into the Bitcoin hacking by US Government in October 2024, he did not personally benefit from them.
He said:
“When the US government got hacked for $20M a few months ago I helped recover a sizable amount of those funds. Was rewarded zero for that.”
Some cryptocommunity members responded by suggesting that ZachXBT sold some of the memcoins distributed. ZachXBT, however, declined to sell any of the memecoins distributed.
Joey Moose – a leading investor in Pudgy Penguins – was inspired by these revelations to launch a fundraiser to help ZachXBT.
Moose encouraged community members to contribute, acknowledging the investigator’s role in exposing fraud and recovering stolen funds.
Moose gave ZachXBT wallet addresses and the pledge to direct all donations collected to ZachXBT. In the first half hour of the campaign, ZachXBT raised more than $50,000.
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