Crypto On-chain investigator ZachXBT has escalated his accusations against LAB, alleging that insiders likely control more than 95% of the token’s supply after a rally that pushed its fully diluted valuation to roughly $6 billion. The claims center on opaque private loans, OTC deals, changing vesting terms, market-maker coordination and what he described as a retail-facing market structure where key supply information is visible to insiders but not ordinary traders.
The latest thread is not ZachXBT’s first warning on LAB. On May 7, he publicly accused LAB founder Vova Sadkov of crypto market manipulation through centralized exchanges and said he had offered a $10,000 bounty for contracts, chat logs and insider documents tied to LAB market-making activity on Bitget spot, Bybit perpetuals, Binance perpetuals and OKX perpetuals.
ZachXBT Points To Unknown Float And Insider Supply
LAB was founded by Sadkov and Mark as a crypto trading platform and held its token generation event in October 2025, according to ZachXBT’s account. He also tied the founders to Eesee, or ESE, a prior project he said left some investors feeling abandoned after the team moved on.
A central issue in the report is the lack of a clear token distribution. ZachXBT said CoinGecko, RootData and CoinMarketCap report different float figures, while LAB’s own documentation provides “zero details” on the supply breakdown. He listed Lemniscap, OKX, Animoca, GSR, Gate, KuCoin, Mirana and Amber among LAB’s backers, adding that several of those entities are also connected to venues where the token trades.
“Based on my analysis of onchain activity, insiders likely control >95% of supply currently,” ZachXBT wrote. The accusation follows a sharp move in LAB earlier this month. Prior coverage of ZachXBT’s May 7 warning noted that LAB had surged more than 537% in one week, reaching above $4.65 after previously trading below $1, with up to 99% of supply potentially controlled by insiders or market makers, according to that report.
ZachXBT also alleged that LAB’s team unilaterally changed public sale terms on Legion from a three-month cliff to a nine-month cliff. He said other creators had publicly reported waiting months for marketing campaign payments without clear follow-up from the team.
The thread then turns to private financing arrangements. ZachXBT cited one draft loan contract from the first quarter of 2026 offering 7.5% per month for six months, with The Lab Management Ltd., a BVI shell, listed as borrower and Sadkov signing as director. In the event of default, repayment would be made in LAB at “market price,” according to his description.
He also alleged that the borrower wallet from the loan contract was the same wallet used for public LAB buybacks and tied it on-chain to a separate Wildcat borrower address. Funds related to LAB, he claimed, flowed to Sadkov’s alleged personal crypto exchange accounts, including accounts that had previously received deposits tied to Eesee.
ZachXBT said additional private OTC and loan deals had circulated since January 2026, including loans at 5% per month, OTC allocations at a 60% discount with a five-month cliff, guaranteed discount tranches and a more recent KOL Capital pitch at an 80% discount. Under that pitch, he said, KOLs were required to post multiple times in support before unlock or risk being blacklisted.
“These create hidden supply unlocks retail cannot see,” ZachXBT wrote. “As price has gone up, the OTC discounts have widened.”
Crypto Exchange Flows Put Bitget In Focus
The most concrete market-structure allegation concerns large crypto exchange flows. ZachXBT said insiders deposited 226 million LAB, which he described as a large percentage of float, to Bitget deposit addresses in March and April. ZachXBT had identified LAB-linked wallets transferring 226 million tokens to Bitget, raising insider-trading concerns.
According to ZachXBT, those deposits remained dormant until roughly 100 million LAB was withdrawn in recent days. He said that from May 11 to May 12, nearly 100 million LAB, worth about $482 million, was withdrawn from Bitget to ten addresses. He also argued that an unknown market maker operating through Chinese crypto exchanges appeared to be using a playbook similar to RIVER, RAVE, SIREN, MYX and SKYAI.
“It seems everyone has private info except retail. Team knows the unlocks, MM knows the positioning, OTC buyers know their cliffs. Retail only sees LAB price.”
ZachXBT called on Bitget, Binance and Gate to freeze alleged insider profits and redistribute them to users, or to delist earlier without waiting for public pressure. He also warned traders against interpreting the thread as a short signal: “This is NOT a recommendation to short. With this much supply control, shorts potentially give insiders more fuel to manipulate the price higher.”
At press time, the total crypto market cap stood at $2.6 trillion.
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