What Is ZachXBT Alleging About LAB?
Blockchain investigator ZachXBT has accused Vova Sadkov, founder of the AI trading terminal project LAB, of market manipulation and is offering a $10,000 bounty for information tied to the alleged scheme.
The bounty seeks information on Sadkov’s passport or ID, as well as insider details related to the market maker allegedly used for LAB trading on Bitget spot, Bybit perpetuals, Binance perpetuals, or OKX perpetuals.
“These grifters are further hurting the industry reputation and it must not go unpunished. War time mode,” ZachXBT wrote on X.
The accusation centers on claims that wallets linked to the LAB team coordinated large deposits of LAB tokens to centralized exchanges before a sharp price rally in early May.
How Did the Alleged Scheme Work?
According to ZachXBT and other onchain analysts, tens of millions of dollars worth of LAB tokens were allegedly deposited to exchanges including Bitget, Bybit, and Binance before the token’s price surged.
Onchain analyst Specter said some deposits happened weeks before the price move and pointed to gas fee links between wallets allegedly controlled by LAB insiders or Sadkov.
Some of those wallets were also linked to other tokens, including SkyAI, which ZachXBT has separately flagged for suspected manipulation.
ZachXBT said he contacted the LAB team privately but did not receive a reply before taking the allegations public.
Investor Takeaway
Why Are Centralized Exchanges Under Pressure?
ZachXBT also directed criticism at centralized exchanges, arguing that platforms should react faster when suspicious token activity appears. He publicly messaged Bitget CEO Gracy Chen and accused exchanges of benefiting from trading fees generated by manipulated tokens.
“CEXs need to freeze MM profits / distribute to users (victims) when these games happen,” ZachXBT wrote. “Should not rely on people calling it out.”
The issue is not limited to LAB. ZachXBT has recently called out several smaller tokens for questionable market activity, including RAVE, SIREN, MYX, COAI, M, PIPPIN, and RIVER.
His broader criticism is that exchanges are too slow to intervene when abnormal trading patterns appear, leaving retail traders exposed while platforms continue to collect fees from inflated volume.
Investor Takeaway
What Does This Mean for Smaller Crypto Projects?
The LAB allegations highlight a recurring risk in smaller crypto projects where low liquidity, concentrated token ownership, and opaque market-maker arrangements can create sharp price swings.
For investors, the main danger is not just volatility but information asymmetry. Insiders and affiliated wallets may be able to move tokens to exchanges before retail traders understand the supply dynamics behind a rally.
For exchanges, the case raises questions about surveillance, market-maker oversight, and whether profits linked to suspected manipulation should be frozen while investigations are underway.
The allegations remain unproven, but the case adds to scrutiny of how smaller tokens are promoted, listed, and traded across centralized venues.
