ZachXBT Accuses Four Online Traders of Involvement in Pump-and-Dump Scheme with PAAL AI Token
A blockchain investigator, ZachXBT, has presented evidence suggesting that four well-known online traders participated in a pump-and-dump scheme involving the Ethereum token PAAL AI. A disclosed message from the accused trader’s telegram group indicated their potential reach of up to 2.67 million organic followers. On September 11, ZachXBT publicly alleged on social media that TraderNJ, PetaByte, XO, and Trader SZ were involved in the scheme, aiming to profit at the expense of their followers.
ZachXBT shared a diagram on social media illustrating transactions between crypto wallets, particularly focusing on the PAAL AI project. He explained that Trader SZ began promoting the token on social media shortly after receiving 4 million PAAL tokens from the project team on August 10. ZachXBT claimed that Trader SZ then dumped the tokens.
ZachXBT’s Legal Battle and Community Support
In 2022, ZachXBT faced a lawsuit from Jeffrey Huang, also known as MachiBigBrother on Twitter, over an investigative article. ZachXBT considered the lawsuit baseless and an attack on free speech. He vowed to fight the legal action but sought financial assistance from the community. Within hours, he received over $600,000 in contributions, with prominent figures like Binance CEO Changpeng “CZ” Zhao and Kraken founder Jesse Powell supporting him. On August 15, both ZachXBT and Huang announced on social media that the lawsuit had been dropped.
Hot Take
ZachXBT’s allegations against the four online traders highlight the ongoing issue of pump-and-dump schemes in the cryptocurrency market. This case serves as a reminder for crypto investors to exercise caution and conduct thorough research before following any trading advice or investing in a project. It also demonstrates the power of community support in rallying behind individuals facing legal challenges in the crypto space.
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