- ZachXBT alleged that LAB insiders have control over 95% of the supply as the token’s valuation approached $6 billion.
- Conflicting LAB supply data and private OTC deals raised fresh transparency concerns among traders.
- ZachXBT linked LAB wallet activity to alleged market manipulation tied to multiple speculative tokens.
Crypto investigator ZachXBT has raised concerns about the LAB Token after publishing a report on insider activity. He alleged that insiders control more than 95% of the token supply. He also cited over-the-counter transactions, token unlock structures, market maker coordination, and fund movements across centralized exchanges.
The claims came as LAB’s fully diluted valuation rose toward $6 billion. ZachXBT said retail traders mainly see rising prices while insiders manage supply distribution. He further alleged that founders Vova Sadkov and Mark used offshore structures for private agreements while exchanges continued listing the token.
Insider Supply and OTC Deals Raise Concerns
ZachXBT said LAB does not provide clear information on its token structure. He pointed to differences in supply data across major crypto tracking sites.
He noted that CoinGecko, CoinMarketCap, and RootData show conflicting figures for circulating supply and float. He also said the project’s documentation does not include a full breakdown of how the token supply is distributed.
The blockchain investigator further alleged that LAB insiders privately marketed discounted over-the-counter token allocations and loan agreements during 2026. According to claims shared on X, some arrangements allegedly offered investors monthly interest rates of 7.5% through a British Virgin Islands entity called The Lab Management Ltd.
ZachXBT also said some borrowers were allowed to repay loans using LAB tokens at market prices after they had defaulted. He further claimed that a wallet linked to one borrower moved in line with LAB buyback activity and sent funds to exchange deposit addresses he associated with Sadkov.
He also accused the project team of changing investor vesting terms without getting prior approval. Screenshots shared on X showed investor complaints after LAB reportedly extended token lockup periods from three months to nine months.
Exchange Activity and Market Manipulation Claims
ZachXBT also linked LAB-related wallet activity to alleged manipulation involving the RIVER token. According to the blockchain investigator, insiders transferred roughly 226 million LAB tokens to addresses associated with Bitget between March and April 2026. He later claimed that nearly 100 million LAB tokens, valued at about $482 million at the time, were subsequently withdrawn from those wallets.
The investigator alleged that much of the trading activity was managed by an unidentified market maker operating through Chinese crypto exchanges. He further argued that LAB’s trading behavior resembled patterns previously observed in tokens such as RIVER, RAVE, SIREN, MYX, and SKYAI.
Reaction in the crypto community was divided after the allegations. Some traders said the report ended up drawing more attention to risky, speculative tokens. Others accused ZachXBT of influencing market sentiment through his public posts.
Responding to criticism on X, ZachXBT defended his work. He wrote that “you cannot have both,” saying crypto communities often demand a level of proof that is difficult for investigators to meet.
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