Crypto on-chain investigator ZachXBT has intensified his criticism of LAB, claiming that insiders may control more than 95% of the token supply following a massive rally that pushed the project’s fully diluted valuation close to $6 billion.
The allegations focus on concerns around token transparency, insider allocations, OTC deals, market-making activity, and undisclosed supply unlocks that retail investors may not fully see.
Key Allegations Against LAB
According to ZachXBT, the project’s token structure lacks transparency, with major data platforms reportedly showing conflicting figures regarding LAB’s circulating supply and float.
He argues that:
- Insider wallets may control the overwhelming majority of tokens
- Private OTC deals and loan agreements created hidden supply risks
- Vesting terms for early participants were allegedly changed after launch
- Market makers may have coordinated exchange activity behind the scenes
- Retail traders had limited visibility into actual token distribution
The claims come after LAB experienced a dramatic price surge earlier this month, rising more than 500% within a week and briefly reaching a multi-billion-dollar valuation.
Questions Around Token Distribution
LAB was reportedly launched in late 2025 by founders Vova Sadkov and Mark as part of a crypto trading ecosystem. ZachXBT also linked the founders to an earlier project called Eesee (ESE), which he claims left some community members disappointed after the team shifted focus.
A major concern raised in the investigation is the absence of clear public information regarding token allocation and circulating supply.
ZachXBT noted that platforms such as CoinGecko, CoinMarketCap, and RootData display inconsistent supply figures, while LAB’s own documentation allegedly provides limited details on token distribution.
OTC Deals & Private Financing Concerns
The report also highlights several alleged OTC and private financing arrangements tied to LAB.
According to ZachXBT:
- Certain OTC allocations were reportedly offered at steep discounts
- Some loan agreements allegedly carried monthly interest rates as high as 7.5%
- Hidden unlock schedules may have created supply pressure invisible to retail traders
- Promotional agreements with influencers allegedly included token incentives tied to posting activity
He argued that these arrangements could create information asymmetry, where insiders and large holders understand token unlock schedules while ordinary traders only see price action.
Exchange Activity Draws Attention
One of the most serious claims involves large token transfers linked to crypto exchanges.
ZachXBT alleged that approximately 226 million LAB tokens were transferred to Bitget-related deposit addresses earlier this year. He further claimed that nearly 100 million LAB tokens, valued at hundreds of millions of dollars, were later withdrawn to multiple wallets over a short period.
The investigator suggested the activity resembled previous token market-making patterns seen in other controversial crypto projects.
Warning to Traders
Despite the allegations, ZachXBT cautioned traders against aggressively shorting the token, warning that concentrated insider control could increase the risk of price manipulation and volatile squeezes.
He also called on major exchanges, including Bitget, Binance, and Gate, to investigate suspicious activity, freeze potential insider profits if necessary, or take stronger action against projects with opaque market structures.
At the time of reporting, neither LAB nor the exchanges mentioned had publicly responded in detail to the latest accusations.
