In a striking revelation, crypto on-chain investigator ZachXBT has intensified his accusations against LAB, suggesting that insiders may control over 95% of the token’s supply. This claim comes on the heels of a massive price rally that propelled LAB’s fully diluted valuation to approximately $6 billion, raising eyebrows within the crypto community.
The allegations focus on various opaque practices, including private loans, over-the-counter (OTC) deals, and changing vesting terms, which ZachXBT argues create an unfair playing field where vital supply information is accessible to insiders but hidden from retail traders. In a recent post, he elaborated on what he termed a retail-facing market structure, asserting that the transparency expected in crypto markets is lacking.
ZachXBT’s Ongoing Concerns About LAB
This isn’t the first time ZachXBT has sounded the alarm regarding LAB. Back on May 7, he publicly accused LAB’s founder, Vova Sadkov, of manipulating the crypto market via centralized exchanges. He even offered a $10,000 bounty for evidence relating to LAB’s market-making activities across multiple platforms, including Bitget and Binance.
LAB, established by Sadkov and his partner Mark, launched its token generation event in October 2025. ZachXBT also linked the founders to a previous project, Eesee, which reportedly left some investors feeling abandoned.
A central issue highlighted in ZachXBT’s analysis is the ambiguous token distribution. He noted discrepancies in the float figures reported by CoinGecko, RootData, and CoinMarketCap, with LAB’s own documentation providing scant details on supply allocation. Among LAB’s prominent backers are Lemniscap, OKX, Animoca, GSR, Gate, KuCoin, Mirana, and Amber, many of which are also trading venues for the token.
“Based on my analysis of on-chain activity, insiders likely control >95% of supply currently,” ZachXBT stated. This assertion follows a dramatic price increase for LAB, which surged over 537% within a week, climbing from below $1 to over $4.65, amidst speculation that up to 99% of the supply might be in the hands of insiders.
Moreover, ZachXBT accused LAB’s team of altering public sale terms, extending the vesting cliff from three months to nine months without proper communication. He also mentioned that other creators have been left waiting for marketing payments, creating an atmosphere of uncertainty.
The investigation next delved into private financing arrangements, uncovering a draft loan contract from early 2026 that offered 7.5% interest per month, with The Lab Management Ltd., a BVI shell company, named as the borrower. If the borrower defaulted, repayment would be made in LAB at a “market price,” raising further concerns about the opacity surrounding these transactions.
ZachXBT also flagged that the wallet associated with the loan contract appeared to be the same wallet used for LAB buybacks, linking it to Sadkov’s personal crypto exchange accounts. This revelation suggests a troubling flow of funds related to LAB.
Exchange Flows Under Scrutiny
One of the most alarming aspects of ZachXBT’s findings revolves around significant crypto exchange flows. He reported that insiders transferred 226 million LAB tokens to Bitget in March and April. These deposits remained inactive until approximately 100 million tokens were withdrawn recently, sparking fears of insider trading.
From May 11 to May 12, nearly 100 million LAB, valued at about $482 million, was withdrawn from Bitget to various addresses. ZachXBT indicated that an unidentified market maker operating through Chinese exchanges seemed to follow a pattern reminiscent of other controversial tokens.
“It seems everyone has private info except retail. The team knows the unlocks, market makers are aware of their positions, and OTC buyers are informed of their cliffs. Retail traders only see the LAB price,” ZachXBT noted, emphasizing the disparity in information access.
In light of these findings, ZachXBT has urged Bitget, Binance, and Gate to freeze any alleged insider profits and redistribute them to users, or to consider delisting the token to avoid further public scrutiny. He also cautioned traders against interpreting his findings as a signal to short the token, as the concentrated supply could empower insiders to manipulate prices further.
As of now, the total crypto market cap stands at $2.6 trillion, reflecting the ongoing volatility and speculative nature of the market.
