ZachXBT Uncovers Shocking LAB Token Manipulation Scheme
By HIBIKI, CryptoCity
In early May, the crypto world witnessed a dramatic event: LAB, a relatively niche AI-concept token, experienced an astronomical surge of over 500% before plummeting by a staggering 84%. This abrupt volatility immediately drew the attention of the renowned on-chain investigator, ZachXBT, who suspected blatant market manipulation. ZachXBT has since relentlessly pursued the case, even offering a bounty for crucial evidence.
On May 14th, ZachXBT released his latest, explosive findings, exposing a sophisticated network of insider teams, crypto Key Opinion Leaders (KOLs), and coordinated market makers orchestrating the malicious manipulation behind LAB’s price movements.
Accusation 1: Insiders Allegedly Control Over 95% of LAB Token Supply
ZachXBT’s meticulous on-chain analysis reveals that individuals within the LAB team may exert control over a staggering 95% of the token’s total supply. This level of centralization raises immediate red flags regarding potential market manipulation.
The project, initiated by Vova Sadkov and Mark in October 2025, follows their previous venture, Eesee ($ESE), which has since become defunct, with its token price plummeting to near zero from its all-time high. This history casts a shadow over the founders’ current project.
A significant lack of transparency plagues LAB’s token distribution. Circulating supply figures differ across various platforms, and official documentation offers no detailed breakdown. Intriguingly, Vova Sadkov previously claimed support from prominent institutions including Lemniscap, OKX, Animoca, GSR, Gate, Kucoin, Mirana, and Amber.
Since the LAB token’s inception, on-chain records show only a handful of non-insider transfers exceeding $150,000. Crucially, nearly 69% of the total LAB supply remains outside public circulation, representing a massive, latent selling pressure that could be unleashed at any moment.
Accusation 2: Illicit Deals Between LAB Team and Crypto KOLs
ZachXBT’s investigation further exposes a web of preferential treatment, alleging that the LAB team began offering exclusive Over-The-Counter (OTC) transactions and loan agreements to select individuals starting in January 2026.
Co-founder Mark was reportedly seen soliciting OTC buyers in public forums. Offers included loans with a steep 5% monthly interest rate and heavily discounted OTC deals – up to 60% off – albeit with a 5-month lock-up period.
A particularly damning piece of evidence is a private contract unearthed by ZachXBT. This contract details a 6-month loan at an astonishing 7.5% monthly interest, signed by “The Lab Management Ltd.,” a shell company purportedly represented by Vova Sadkov. The terms stipulated repayment in LAB tokens at market price in case of default. Crucially, the borrowing wallet for this contract matches an address used for LAB’s public buybacks and is linked on-chain to another loan involving Wildcat.
Even more concerning were proposals offering KOLs discounts of up to 80% on tokens. These offers came with stringent conditions: KOLs were mandated to promote the project multiple times before their tokens unlocked, facing blacklisting if they failed to comply.
ZachXBT underscores that these clandestine agreements with crypto KOLs effectively created a “hidden supply” of tokens, inaccessible and invisible to retail investors. Adding insult to injury, the team unilaterally extended the public sale unlock period from an initial 3 months to 9 months, further trapping early investors.
Accusation 3: Centralized Exchanges Used for Elaborate Manipulation
ZachXBT’s investigation paints a clear picture of how centralized exchanges were allegedly weaponized for the LAB token manipulation. Between March and April 2026, insiders reportedly deposited a staggering 226 million LAB tokens into Bitget. These tokens remained dormant until May 11-12, when nearly 100 million of them, then valued at approximately $480 million, were withdrawn from Bitget into 10 newly created addresses.
While Bitget appears to be the primary hub for LAB token spot trading activity, Binance and Gate exchanges were also implicated in the manipulation scheme.
Disturbingly, fund flow analysis reveals that capital directly linked to LAB ultimately found its way into Vova Sadkov’s personal accounts on Bybit and Gate, indicating an egregious commingling of corporate and personal funds – a significant red flag for financial impropriety.
ZachXBT further suggests the involvement of an unidentified market maker, believed to be operating through Chinese exchanges. This entity is suspected of employing a consistent manipulation playbook previously observed with tokens such as RIVER, RAVE, SIREN, MYX, and SKYAI.
Compounding these findings, several signers of the LAB team’s multi-signature wallets received funds originating from an insider previously connected to the RIVER token manipulation case. This individual had reportedly transferred over $12 million worth of RIVER tokens into two centralized exchanges, establishing a clear pattern of dubious activity.
In the 24 hours following ZachXBT’s exposé, the LAB token experienced another dramatic plunge, dropping over 40%. However, ZachXBT issued a stern warning against attempting to participate in or short the token. He cautioned that given the internal team’s overwhelming control of the token supply, reckless shorting could inadvertently provide the fuel for a malicious short squeeze, further harming retail investors.
ZachXBT Issues Urgent Call to Action for Centralized Exchanges
In a powerful concluding statement, ZachXBT directly challenged Bitget, Binance, and Gate, the three implicated centralized exchanges. He urged these platforms to immediately freeze the illicit profits gained by insiders and redistribute them to affected users, or, failing that, to swiftly delist the LAB token.
This call to action follows ZachXBT’s recent scathing criticism of Bitget, which he controversially labeled a “Chinese CEX cartel.” He asserted that while Gracy Chen serves as CEO, the true founder and chairman, Shawn Liu, allegedly allows fraudulent projects to operate unchecked behind the scenes. These strong accusations have ignited considerable debate and concern within the crypto community.
- Related Report: ZachXBT: Bitget is a “Chinese Cartel”! Unmasking the Exchange’s True Owner and the LAB Token Manipulation Truth
“Demon Coins” on the Rise: A Crucial Warning for Retail Investors
The current crypto bear market has seen a disturbing proliferation of “demon coins” – obscure tokens with inflated valuations and low circulating supplies that are aggressively pumped only to crash spectacularly. From the previously reported RAVE token to the current LAB scandal, these schemes continue to ensnare unsuspecting retail investors.
ZachXBT starkly highlights the inherent information asymmetry in these cases: only the insider teams, market makers, and crypto KOLs are privy to the true machinations, while retail investors are left in the dark, reacting solely to manipulated price movements. This raises critical questions about the due diligence capabilities of centralized exchanges, which often boast robust review processes and professional teams, yet frequently lag behind independent on-chain detectives like ZachXBT in uncovering these illicit operations.
While Binance and Bitget previously announced investigations into the RAVE manipulation case, neither exchange has yet confirmed whether an official investigation into the LAB token allegations has commenced.
(The above content has been excerpted and reproduced with authorization from our partner “CryptoCity”. Original Link)
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