ZachXBT, a prominent figure in crypto investigations, despite his unpaid crypto detective work, has gained a reputation for exposing scams and aiding agencies in unraveling multimillion-dollar frauds. However, the spotlight turned on him recently when he was accused of orchestrating a rug pull—a scam he’s spent years uncovering.
The allegations surfaced on January 21, when ZachXBT removed liquidity from a memecoin that had been gifted to him. Critics quickly pointed fingers, claiming he had carried out a rug pull. Yet, the situation is far more nuanced, shedding light on the financial and emotional toll of unpaid crypto detective work.
Understanding the Alleged Rug Pull
By definition, a rug pull occurs when developers or project teams abandon a token by pulling liquidity or support. In ZachXBT’s case, the memecoin in question was dubious from the outset. Anonymous creators gifted him the token, seemingly using his name to legitimize it. ZachXBT clarified:
“The allegations mostly come from influencers I posted about previously for dumping on followers with tokens they were paid to promote.”
The creators transferred half the token’s supply to ZachXBT, which he used for single-sided liquidity—a method that deposits one token type into a pool rather than a trading pair. Fees accrued in Solana (SOL) tokens, amounting to 16,348.95 SOL ($4.3 million), which ZachXBT withdrew and sent to trading firm Wintermute. Despite this, he denied promoting the coin or having any knowledge of its creators
“All I wish to clarify is I did not promote the coin to my followers at all anywhere and do not know who created the token.” he said
A Frustrated Investigator
ZachXBT’s work as a crypto detective has been widely acknowledged, even referenced by the United Nations Security Council in discussions on North Korea’s crypto hacking activities. Yet, his frustrations over the lack of financial incentives for unpaid crypto detective work have been mounting.
Responding to a comment on X about being “the busiest person in crypto,” ZachXBT lamented:
“One of my biggest regrets here is not prioritizing making money.”
This candid admission reflects the challenges faced by independent investigators who dedicate countless hours to protecting the crypto community but often lack proper compensation.
Unpaid Crypto Detective Work
The memecoin drama surrounding ZachXBT is not entirely unique. Memecoins have become a tool for speculation, celebrity endorsements, and, occasionally, expressions of gratitude. Ethereum co-founder Vitalik Buterin, for instance, has received unsolicited token donations in his public wallet. However, Buterin has pledged to donate such tokens to charity.
For ZachXBT, the unsolicited gift of tokens turned into a storm of accusations and speculation. Blockchain investigator SomaXBT defended him, stating:
“From my perspective, what Zach did is completely correct. They didn’t send him any pumped tokens like TRUMP or DOGE—they pumped that token using his name, and he simply took the profit.”
However, the incident raised broader questions about the ethics of monetizing unsolicited donations and the fine line between reclaiming one’s due and a perceived lapse in judgment.
Growing Concerns About Retirement
The rug pull allegations and ongoing challenges have sparked fears that ZachXBT might retire from unpaid crypto detective work. His investigations have earned him both respect and enemies, with critics monitoring his every move, waiting for missteps. Mikko Ohtamaa, founder of Trading Strategy, remarked:
“Scammers will always try to tarnish his reputation as revenge.”
Despite this, ZachXBT remains active in exposing fraudulent activities. On January 23, he released a video uncovering a scammer, and on January 24, he issued warnings about a rising trend of hackers targeting X accounts to promote fraudulent tokens. His advice to the community remains sharp: be wary of surprise announcements, as they’re often red flags for scams. While some speculated that ZachXBT’s $4.3 million withdrawal marked an exit from the crypto scene, his recent activity suggests otherwise. Blockchain investigator SomaXBT stated:
“Zach isn’t retiring with that $4 million. He’s still committed to working hard and adding value.”
A Commitment to Crypto Justice
The ZachXBT rug pull drama highlights the complexities of unpaid crypto detective work. Beyond the surface allegations lies a deeper story of dedication, frustration, and ethical dilemmas faced by those committed to safeguarding the digital financial space. For now, ZachXBT continues to uphold his role as a watchdog in the crypto world, but his saga underscores the need for better recognition and support for those engaged in unpaid crypto detective work. Stay updated with the latest developments in the cryptocurrency industry through The BIT Gazette, offering comprehensive insights into current events shaping the sector.
