TLDR
- ZachXBT, a renowned blockchain investigator, cashed out approximately $4M from a memecoin created in his name
- The investigator received 500M ZACHXBT tokens (50% of total supply) from an unknown developer
- He used the tokens to create liquidity in ZACHXBT/SOL pair before withdrawing 91M tokens and 16,059 SOL
- The SOL tokens were transferred to Wintermute, suggesting an OTC trade
- The cash-out comes after ZachXBT expressed frustration over lack of financial rewards for his investigative work
ZachXBT, a well-known blockchain investigator, withdrew nearly $4 million from a memecoin project bearing his name. The transaction occurred after an anonymous developer created and distributed the token without prior coordination.
Blockchain data reveals that ZachXBT’s Solana wallet, identified as investigations.sol, received half of the total supply of the newly created ZACHXBT token. This allocation amounted to 500 million tokens, representing 50% of all tokens in circulation.
Following the receipt of these tokens, ZachXBT took steps to establish market liquidity. He used his token allocation to create a trading pair between ZACHXBT and SOL on decentralized exchanges. This move enabled other traders to buy and sell the token.
The market responded strongly to the token’s launch, with its total value reaching approximately $97 million at its peak. However, this valuation proved short-lived.
Within 24 hours of the token’s creation, ZachXBT’s wallet withdrew about 91 million ZACHXBT tokens along with 16,059 SOL tokens from the liquidity pool. At current market prices, the SOL tokens were worth around $3.81 million.
The withdrawn SOL tokens were then moved to a new address before being transferred to Wintermute, a crypto market maker. Industry observers suggest this transfer pattern indicates an over-the-counter (OTC) trade, though the exact details remain private.
ZachXBT confirmed his involvement in these transactions to media outlets. He emphasized that he did not promote the token on any social media platforms, including X (formerly Twitter) and Telegram. He also stated that he has no knowledge of who deployed the memecoin.
The timing of this event coincides with recent statements from ZachXBT about his financial situation. Just one day before the token withdrawal, he expressed regret about not focusing more on monetary compensation, stating, “One of my biggest regrets is not prioritizing making money.”
One of my biggest regrets here is not prioritizing making money.
Doesn’t help I have little business sense.
— ZachXBT (@zachxbt) January 20, 2025
This sentiment stems from his extensive work as a blockchain investigator. ZachXBT has built a reputation for exposing fraud and helping recover stolen cryptocurrency funds. In October 2024, he assisted in recovering funds after a $20 million hack of U.S. government Bitcoin holdings, but received no compensation for his efforts.
The crypto community’s reaction to ZachXBT’s token withdrawal has been mixed. Some supporters, like Andre Cronje, co-founder of Sonic Labs, defended his actions. Cronje pointed to ZachXBT’s years of unpaid contributions to the cryptocurrency space as justification for benefiting from the token.
Spent literal years providing support for projects, users, agencies saving hundreds of millions of dollars for victims all for free.
Some dude makes a meme in his name and sends him supply. People buying the token supposedly to help Zach, he takes profits. <shocked pikachu>…
— Andre Cronje (@AndreCronjeTech) January 21, 2025
In response to these events, Joey Moose, an investor in Pudgy Penguins, launched a fundraising campaign to support ZachXBT’s work. The campaign accepts donations in Bitcoin, Ethereum, and Solana. Within its first hour, it raised over $50,000.
After the withdrawal, ZachXBT’s wallet burned the remaining memecoin tokens in its possession. The token’s market value decreased to around $19 million following these events.
The development adds a new chapter to ongoing discussions about compensation for independent blockchain investigators. ZachXBT’s previous statements reveal frustration with the lack of financial rewards for his work, despite its impact on the cryptocurrency ecosystem.
