ZachXBT’s Solana Wallet Accused of Withdrawing $4 Million from Memecoin Project

Background

A Solana wallet tied to renowned blockchain investigator ZachXBT has been accused of withdrawing nearly $4 million from a memecoin project associated with his name. This controversy comes amid a community-led effort to raise funds for his investigative work.

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.

Shortly after, the investigations.sol wallet used these tokens to create liquidity in the ZACHXBT/SOL trading pair and later withdrew approximately 91 million ZACHXBT tokens and 16,059 SOL tokens (around $3.81 million) from the liquidity pool.

On-chain data further shows the SOL was transferred to an address linked to crypto market maker Wintermute, sparking speculation about a possible over-the-counter (OTC) trade.

Industry Recognition

The development occurred after ZachXBT recently expressed frustration over the lack of financial rewards for his investigative efforts.

He disclosed that many of his investigations, like the October 2024 US government Bitcoin hack, yielded no personal gain despite their significant impact.

According to him:

“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.”

In response, some crypto community members suggested that ZachXBT sell some of the memecoins distributed to him. However, ZachXBT declined, citing concerns over potential backlash.

Community Support

Meanwhile, these revelations spurred Joey Moose, a prominent investor in Pudgy Penguins, to initiate a fundraising campaign to support ZachXBT.

Moose encouraged community members to contribute, acknowledging the investigator’s role in exposing fraud and recovering stolen funds.

Moose shared wallet addresses for Bitcoin, Ethereum, and Solana donations and pledged to send all collected funds directly to ZachXBT. Within the first hour, the campaign raised over $50,000, showcasing widespread appreciation for his work.

Defender’s Perspective

Sonic Labs co-founder Andre Cronje defended ZachXBT’s actions, highlighting his years of unpaid contributions to the crypto space. He argued that ZachXBT had every right to benefit from a token created in his name, given his track record of aiding projects and recovering funds for fraud victims.

Conclusion

The controversy surrounding ZachXBT’s Solana wallet highlights the complex dynamics at play in the crypto community. While some may view his actions as controversial, others see it as a necessary step towards recognizing the value of his investigative work. As the debate continues, it is clear that ZachXBT’s contributions to the crypto space are undeniable, and his dedication to exposing fraud and recovering stolen funds is worthy of recognition and support.

FAQs

Q: What is the controversy surrounding ZachXBT’s Solana wallet?

ZachXBT’s Solana wallet has been accused of withdrawing nearly $4 million from a memecoin project associated with his name.

Q: What is the ZACHXBT token?

The ZACHXBT token is a memecoin created by an unknown developer, with half of the total supply distributed to an address allegedly belonging to ZachXBT.

Q: What is the purpose of the fundraising campaign initiated by Joey Moose?

The fundraising campaign aims to support ZachXBT’s investigative work and provide financial rewards for his contributions to the crypto space.

Q: Who defended ZachXBT’s actions?

Sonic Labs co-founder Andre Cronje defended ZachXBT’s actions, highlighting his years of unpaid contributions to the crypto space and arguing that he had every right to benefit from a token created in his name.

Q: How much was raised in the first hour of the fundraising campaign?

Over $50,000 was raised in the first hour of the fundraising campaign.