On-chain cryptocurrency sleuth ZachXBT has escalated his accusations against LAB, alleging that insiders likely control more than 95% of the token’s supply following a rally that pushed its fully diluted valuation to nearly $6 billion. Claims center on opaque private loans, over-the-counter deals, changing vesting terms, and coordination between market makers and do-it-yourselfers. described As a retail facing market structure where key supply information is visible to insiders but not to casual traders.
The latest thread is not ZachXBT’s first warning on LAB. On May 7, he publicly accused LAB founder Vova Sadkov of manipulating the cryptocurrency market through centralized exchanges, and said he offered a $10,000 reward for contracts, chat logs and internal documents related to LAB’s market-making activity on Bitget, Bybit Perpetual, Binance Perpetual, and OKX Perpetual.
ZachXBT refers to an unknown float and internal supply
LAB was founded by Sadkov and Mark as a cryptocurrency trading platform and held a token creation event in October 2025, according to ZachXBT’s account. He also connected the founders to Eese, or ESE, a previous venture that he said left some investors feeling abandoned after the team moved.
One of the central issues in the report is the lack of a clear symbolic distribution. CoinGecko, RootData, and CoinMarketCap are reporting different float numbers, while LAB’s own documents provide “zero details” about the supply’s collapse, ZachXBT said. He listed Lemniscap, OKX, Animoca, GSR, Gate, KuCoin, Mirana and Amber among LAB backers, adding that many of these entities are also linked to venues where the token is traded.
“Based on my analysis of onchain activity, insiders likely control over 95% of the supply currently,” ZachXBT wrote.
The accusation comes after a sharp move at LAB earlier this month. Previous coverage of ZachXBT’s warning on May 7 indicated that LAB rose more than 537% in one week, reaching more than $4.65 after previously trading for less than $1, with insiders or market makers potentially controlling up to 99% of the supply, according to that report.
ZachXBT also alleged that the LAB team unilaterally changed the terms of the public sale on Legion from a three-month cliff to a nine-month cliff. He said other creators have publicly reported waiting months for marketing campaign payments without clear follow-up from the team.
The topic 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 British Virgin Islands company, listed as a borrower and Sadkov signed on as manager. In the event of default, the LAB will be repaid at “market rate,” according to its description.
He also claimed that the borrower’s wallet from the loan contract was the same wallet used for public LAB buybacks and linked it on-chain to a separate Wildcat borrower’s address. He claimed that LAB-related funds flowed into Sadkov’s alleged personal cryptocurrency exchange accounts, including accounts that had previously received deposits linked to Eese.
ZachXBT said additional OTC and private loan deals have been traded since January 2026, including loans at 5% per month, OTC allocations at a 60% discount with a five-month cliff, collateralized discount tranches and KOL Capital’s latest offering at an 80% discount. Under this idea, KOLs were required to deploy multiple times for support before being unlocked or risk being blacklisted, he said.
“These create hidden supply that opens doors that retail can’t see,” ZachXBT wrote. “As prices rose, OTC discounts expanded.”
Cryptocurrency exchange flows put Bitget in the spotlight
The most realistic claim about market structure concerns significant inflows from cryptocurrency exchanges. ZachXBT said insiders deposited 226 million LAB, which he described as a large percentage of the float, to Bitget deposit addresses in March and April. ZachXBT identified LAB-linked wallets transferring 226 million tokens to Bitget, raising insider trading concerns.
According to ZachXBT, these deposits remained dormant until nearly 100 million LAB were withdrawn in recent days. He said that between May 11 and 12, nearly 100 million LAB, worth about $482 million, were withdrawn from Bitget to ten addresses. He also claimed that there is an unknown market maker operating through Chinese cryptocurrency exchanges It appears to use a similar playbook TO THE RIVER, RAVE, SIREN, MYX and SKYAI.
“Everyone seems to have private information except retail. The team knows the opens, MM knows the location, and OTC buyers know their ramps. Retail only sees the LAB price.”
ZackXBT called BitgetBinance and Gate to freeze alleged internal profits and redistribute them to users, or delist them early without waiting for public pressure. He also cautioned traders against interpreting the thread as a sell signal: “This is not a sell recommendation. With so much control over the supply, short trades will likely give insiders more fuel to manipulate the price higher.”
At the time of publication, the total market cap of cryptocurrencies was $2.6 trillion.
Featured image created with DALL.E, a chart from TradingView.com
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