TLDR
- Blockchain investigator ZachXBT extracted $3.81M from an unsolicited memecoin through a Wintermute OTC trade
- The token, created by an unknown developer, allocated 50% of supply to ZachXBT’s wallet
- The market cap peaked at $97M before dropping to $19M after the withdrawal
- This follows ZachXBT’s recent comments about lack of compensation for investigative work
- A community fundraising effort launched in response has raised over $50,000
Renowned cryptocurrency investigator ZachXBT has converted an unsolicited memecoin allocation into approximately $3.81 million worth of Solana tokens through what appears to be an over-the-counter deal with market maker Wintermute.
The story began when an anonymous developer created a new token called ZACHXBT on the Solana blockchain, sending half of the total supply – 500 million tokens – directly to a wallet known to belong to the blockchain investigator.
On-chain data shows that upon receiving the tokens, the wallet labeled ‘investigations.sol’ took strategic steps to maximize value from the unexpected allocation. The first move involved creating a liquidity pool pairing the ZACHXBT token with SOL, Solana’s native cryptocurrency.
The token’s market capitalization quickly surged to $97 million as traders began interacting with the newly created liquidity pool. However, this peak valuation proved temporary.
Within 24 hours of the token’s creation, blockchain records show that investigations.sol executed a series of transactions to withdraw both ZACHXBT tokens and SOL from the liquidity pool. Specifically, the wallet removed 91 million ZACHXBT tokens alongside 16,059 SOL tokens.
The withdrawn SOL, valued at approximately $3.81 million at current market rates, was subsequently routed through an intermediate address before landing at a wallet associated with Wintermute, a major cryptocurrency market maker known for facilitating large private trades.
When contacted by crypto media outlets, ZachXBT confirmed his involvement in the transactions. He emphasized two key points: he had no prior knowledge of the token’s creation, and he did not promote or market the token on any social media platforms.
The timing of these events aligns with recent public statements from ZachXBT expressing frustration over the lack of financial compensation for his investigative work. Just one day before the token withdrawal, he posted, “One of my biggest regrets is not prioritizing making money.”
This sentiment stems from numerous high-profile investigations that yielded no monetary rewards. A notable example occurred in October 2024, when ZachXBT helped recover funds following a $20 million hack of U.S. government Bitcoin holdings – work for which he received no compensation.
The crypto community’s response to the token withdrawal has varied. Andre Cronje, who co-founded Sonic Labs, publicly supported ZachXBT’s actions, pointing to years of voluntary contributions to the cryptocurrency space as justification for accepting the windfall.
Following the withdrawal, investigations.sol burned its remaining ZACHXBT tokens. The token’s market capitalization subsequently declined to approximately $19 million, reflecting the reduced liquidity and circulating supply.
Joey Moose, an investor known for his involvement with Pudgy Penguins, responded to these events by launching a community fundraising campaign. The initiative accepts donations in multiple cryptocurrencies and gathered more than $50,000 in its first hour of operation.
The withdrawal represents one of the larger single-transaction profits seen in recent memecoin events, though it differs from typical cases as the recipient had no involvement in the token’s creation or promotion.
Before these events, ZachXBT had built a reputation as an independent investigator who specialized in exposing cryptocurrency scams and helping victims recover stolen funds.
His investigations often provided crucial information to both law enforcement and the crypto community.
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