Crypto sleuth ZachXBT faces backlash over $3.87M meme token sales and donations

ZachXBT, a well-known investigator in the crypto space, has faced fresh scrutiny over his handling of unsolicited meme tokens and donations. While he has exposed over $500 million in fraud, recent transactions involving his wallet have raised questions. No court or official body has found him guilty of any wrongdoing.

An anonymous developer created a meme token named $ZACHXBT and sent half of its total supply directly to ZachXBT’s wallet. He later sold around 16,059 SOL worth roughly $3.87 million from these unsolicited tokens. Critics argued that he could have redirected the funds to fraud victims or investigations instead.

Separately, wallets linked to Polymarket allegedly made $1.2 million in profits before one of ZachXBT’s public posts. However, no evidence has confirmed a direct connection between the trades and his actions. The Hyperliquid Foundation also donated 10,000 HYPE tokens to ZachXBT, valued at about $254,000 at the time. Shortly after, his critical coverage of Hyperliquid decreased. His legal defence fund has since received contributions from major exchanges like Binance and Bybit, as well as wallets associated with Hyperliquid and Paradigm. ZachXBT has not yet provided a detailed public response to the full range of allegations against him.

The situation highlights ongoing debates about transparency and conflicts of interest in crypto investigations. ZachXBT continues his work despite the controversy, with no legal rulings against him. The donations and token sales remain under public discussion.