Michaela Alvez
Renowned blockchain investigator ZachXBT has attracted both criticism and support after on-chain data revealed he cashed out $4 million from a meme coin associated with his name.
Blockchain data reveals that an address linked to ZachXBT, under the name investigations.sol, received half of the total supply of a newly created meme coin. This equates to 500 million ZACHXBT tokens. The token was created by an anonymous developer, in the investigator’s name.
Instead of holding or burning the 500 million tokens, ZachXBT added half of the supply to the ZACHXBT/SOL trading pair as single-sided liquidity. Shortly after adding the tokens to the liquidity pool, the investigator withdrew nearly 91 million ZACHXBT tokens along with the corresponding SOL.
Less than 24 hours after the token’s launch, its market cap surged to $97 million. However, following ZachXBT’s removal of liquidity, the token’s value sharply dropped to about $19 million.
Additional on-chain analysis revealed that ZachXBT transferred 16,000 SOL, valued at approximately $3.9 million, to a new address before moving it to market maker Wintermute. This appears to have been an over-the-counter (OTC) trade, signaling a strategic exit from the meme coin market.
ZachXBT: Hero or Villain?
The well-known blockchain investigator has long been recognized for his work exposing scams and frauds within the cryptocurrency space. He is particularly famous for his on-chain investigations that uncover shady activities in the crypto world, such as Ponzi schemes and wallet exploitations.
ZachXBT’s detailed reports have earned him a reputation as one of the most trusted figures for blockchain transparency and security.
The incident follows a conversation the investigator had with another X user, where he disclosed that his career focus had unfortunately not included the business acumen necessary to generate income.
ZachXBT further revealed that despite playing a key role in recovering a large portion of the funds from the US government’s Bitcoin hack in October 2024, he did not receive any monetary compensation for his investigative efforts.
In response to the situation, some members of the crypto community suggested that ZachXBT sell a portion of the meme coins he had received. However, ZachXBT declined the suggestion, expressing concerns about the potential backlash that could follow such an action.
Despite ZachXBT’s significant contributions to the crypto space, his decision to remove liquidity has sparked criticism. Some have even compared him to the fraudsters he works to expose.
However, not all reactions have been negative, with some individuals refraining from condemning him outright.
Some members of the crypto community have expressed support for ZachXBT. They argued that given his significant contributions to the space, including his efforts in exposing fraud, he deserved the opportunity to benefit from the meme coin.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
