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ZachXBT Reveals Suspected Pump-and-Dump Operation Linked to Notable Cryptocurrency Traders
Blockchain investigator ZachXBT has accused four prominent online traders—TraderNJ, PetaByte, XO, and Trader SZ—of engaging in a pump-and-dump operation. Notably, the scheme revolves around the Ethereum token PAAL AI. ZachXBT revealed these allegations on September 11 through a series of posts on the social media platform X, previously known as Twitter.
Furthermore, the investigator shared a diagram illustrating transactions among crypto wallets, with a primary emphasis on the PAAL AI project. As per ZachXBT, Trader SZ obtained four million PAAL tokens from the project team on August 10 and began promoting them shortly thereafter. As a result, the token’s price increased from $0.017 to a peak of $0.0451 by September 3.
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In addition, ZachXBT provided various Telegram text and audio messages to support the allegations. One leaked message from the accused trader’s group chat mentioned, “All in all, we could potentially have reached up to 2.67m organic followers.” Another communication from PetaByte indicated that the group’s total following could reach as high as 2.67 million organic followers.
However, this is not ZachXBT’s first encounter with controversy. The investigator has built a reputation for uncovering scams within the crypto sector. On June 17, he was sued by Jeffrey Huang, known as MachiBigBrother on Twitter, over an investigative piece he published in 2022. ZachXBT characterized the lawsuit as “baseless” and an effort to suppress free speech. Within hours, he raised over $600,000 in community donations to challenge the legal action. Notable supporters included Binance CEO Changpeng “CZ” Zhao and Kraken founder Jesse Powell.
ZachXBT and Huang later announced on August 15 that the lawsuit had been withdrawn. Thus, despite encountering legal hurdles, ZachXBT remains dedicated to revealing fraudulent practices within the crypto industry. This recent investigation highlights the necessity for transparency and accountability among influencers in the swiftly changing crypto market.
The post ZachXBT Exposes Alleged Pump-and-Dump Scheme Involving Prominent Crypto Traders appeared first on BitcoinWorld.
