Blockchain investigator ZachXBT has accused the LAB project of running what he described as a large-scale token manipulation scheme. According to the allegations, insiders may still control more than 95% of LAB’s token supply, while retail investors may not have a clear picture of the token’s real circulation.
The accusations have placed LAB, its founders, and exchange-related token movements under fresh scrutiny. ZachXBT claimed that the project failed to properly disclose token distribution details and may have allowed insiders and affiliated market makers to maintain heavy control over the market.
Reports cited by ChainCatcher said LAB’s fully diluted valuation climbed to nearly $6 billion, despite concerns around unclear supply data and undisclosed insider allocations.
ZachXBT Points to Insider Control
The allegations mainly focus on LAB founders Vova Sadkov and Mark, who were previously linked to the Eesee project. ZachXBT claimed the team did not clearly explain how LAB tokens were distributed.
He also alleged that wallets connected to insiders recently withdrew more than 100 million LAB tokens from exchanges. Based on LAB’s market value, those movements could represent hundreds of millions of dollars.
For retail investors, this raises a major concern. If a small group controls most of the supply, the token’s price can become easier to influence. Large holders may be able to push prices higher, create artificial demand, or sell heavily once new buyers enter the market.
Lock-Up Changes Add to Concerns
ZachXBT also accused the project of changing public-sale lock-up terms without proper transparency. According to the claims, the original lock-up period was extended from three months to nine months.
At the same time, some key opinion leaders and large investors were allegedly given more favorable access to tokens and liquidity arrangements. ZachXBT claimed that certain influencers were expected to publish promotional content in exchange for special token access.
These claims have added to concerns that ordinary investors may have faced stricter limits, while insiders and selected participants had more flexibility.
ZachXBT Urges Exchanges to Investigate
ZachXBT called on centralized exchanges to review LAB-related trading activity. He also suggested that suspicious funds should be investigated and possibly frozen if wrongdoing is found.
However, he warned traders not to treat his comments as a signal to short LAB. According to him, when insiders control a large part of the supply, the same concentration can be used to trigger sharp price moves against bearish traders.
That warning reflects a broader risk in highly concentrated crypto tokens. A token may look liquid on exchanges, but if most of the supply is controlled by insiders, price action can become unpredictable and dangerous for both buyers and short sellers.
LAB Controversy Follows Other ZachXBT Investigations
The LAB case is the latest in a series of investigations linked to ZachXBT this year. He has previously raised concerns about other crypto projects, illicit fund flows, and token launches that he believes placed retail investors at risk.
The LAB allegations also resemble earlier concerns around the RAVE token ecosystem, where ZachXBT claimed insiders controlled most of the supply before a major selloff wiped out billions in paper value.
LAB Has Not Responded Publicly
As of now, LAB has not publicly responded to ZachXBT’s latest accusations. Until the project provides a clear explanation, the controversy is likely to keep growing.
The case may also increase pressure on centralized exchanges to review listing standards, monitor insider-linked wallets, and demand clearer token distribution disclosures from crypto projects.
For investors, the situation is another reminder that token supply transparency matters. When ownership is heavily concentrated and distribution details are unclear, retail traders may face risks they cannot easily see from price charts alone.
