Blockchain Investigator ZachXBT Allegedly Cashes Out $4 Million in Memecoin

ZachXBT’s Address Receives 500M Memecoins

An address linked to blockchain investigator ZachXBT received 500 million memecoins, representing 50% of the token’s total supply. The token, named after the investigator, reached a market cap of $97 million within hours of its launch.

Strategic Liquidity Management and OTC Trade

ZachXBT reportedly used half of the supply to add liquidity to the ZACHXBT/SOL trading pair. Subsequently, 16,000 SOL (approximately $3.9 million) was withdrawn from the liquidity pool and transferred to a Wintermute-linked address via an over-the-counter trade.

Market Impact and Token Burn

Following these transactions, the ZACHXBT token’s market cap plummeted to $19 million. Investigations.sol, the address associated with ZachXBT, burned the remaining tokens after the withdrawal, effectively removing them from circulation.

Community Reactions and Broader Implications

ZachXBT expressed regret for not prioritizing financial gains earlier in their career. While some praised their contributions to the crypto industry, others criticized the timing and transparency of the transactions. This event underscores the complexities of maintaining ethical boundaries in the decentralized finance space.