Blockchain investigator ZachXBT has alleged that the LAB project was involved in a major market manipulation operation that may have left retail investors vulnerable while insiders reportedly controlled more than 95% of the token supply.
According to ZachXBT, LAB and its founder Vova Sadkov allegedly hid key token distribution details and manipulated the token’s circulating supply. The investigator claimed insiders likely held over 95% of LAB tokens, while ordinary investors were unaware of the actual circulation figures.
The accusations also involve altered lock-up conditions, unpaid promotional agreements, and questionable token transfers linked to exchanges worth hundreds of millions of dollars. Reports cited by ChainCatcher stated that LAB’s fully diluted valuation climbed to nearly $6 billion despite what ZachXBT described as unclear circulation metrics and undisclosed insider holdings.
The allegations mainly target LAB founders Vova Sadkov and Mark, who were previously associated with the Eesee project. ZachXBT alleged the team failed to provide transparent token allocation disclosures, while insiders and connected market makers supposedly maintained dominant control over circulating tokens. He further claimed wallets linked to insiders recently moved over 100 million LAB tokens off exchanges, representing assets valued in the hundreds of millions.
In addition, ZachXBT accused the project of extending the public-sale lock-up period from three months to nine months without warning, while allegedly giving favorable terms to whales and key opinion leaders. The report also claimed certain influencers were asked to promote the project in return for privileged token access and liquidity benefits.
ZachXBT urges exchanges to investigate
The blockchain investigator called on centralized exchanges to review LAB-related trading activity and consider freezing suspicious funds. In another ChainCatcher report discussing the wider implications of his investigations, ZachXBT warned that heavily concentrated token ownership can create ideal conditions for manipulation and coordinated selloffs.
He also clarified that his statements should not be viewed as encouragement to short LAB, arguing instead that extreme insider concentration could “become fuel” for short squeezes against bearish traders. The warning mirrors concerns he previously raised during the collapse of the RAVE token ecosystem, where insiders allegedly controlled between 90% and 95% of the supply before a massive crash wiped out billions in paper value.
The LAB controversy is the latest in a growing series of investigations involving ZachXBT this year. Earlier reports covered his criticism of Circle over claims it failed to freeze more than $420 million in illicit USDC transactions, along with his concerns surrounding religion-themed crypto token launches.
LAB has not publicly addressed the latest allegations so far, but the situation is expected to intensify discussions around token transparency, exchange accountability, and insider-driven activity within the broader crypto market.
