Blockchain Analyst Accuses Cryptocurrency Influencers of Fraud
Introduction
Blockchain analyst ZachXBT has accused cryptocurrency influencers TraderSZ, Trader_XO, TraderNJ1, and PetaByte of fraud.
Part 1: TraderNJ1 and PetaByte’s Actions
Experts claim that they obtained the tokens fraudulently and inflated their prices and sold them. His investigation consists of two parts. In Part 1, he covers the actions of TraderNJ1 and PetaByte who used other people’s names to acquire (CompanionBot) CBOT and (Baby Shiba Inu) BABYSHIB tokens.
These coins were allocated 8% and 3.5% of the supply, respectively. Both influencers claimed that these tokens would increase in value by 10-20x.
After asset prices rose, traders exhausted their stake, receiving a total of $115,000. After that, the cost of CBOT and BABYSHID decreased rapidly.
Both influencers said they have never participated in paid promotion. However, ZachXBT shared screenshots of correspondence involving traders. It states that influencers depleted assets shortly after purchase without even trying to help the projects.
Part 2: The PAAL Price Pumping System
The second part of the investigation is dedicated to the PAAL price pumping system, including TraderSZ and Trader_XO.
TraderSZ received 4 million PAAL on August 10. At the time, the asset’s price was around $0.028, according to CoinMarketCap. In early September, the price reached a historic high of $0.046. Then the price of the token began to decline rapidly.
All four have been actively promoting PAAL on X (formerly Twitter), inviting users to invest in the project that is actively being developed. Shortly after prices rose, they sold the assets.
However, none of the aforementioned influencers have directly admitted guilt. PetaByte said it still holds its PAAL tokens.
A YouTube Influencer’s $1.5 Million Scam
In July, the analyst also accused a popular YouTuber, Blue or Jack, of fraud. ZachXBT claims that Blue amassed over 122,000 subscribers on YouTube before becoming involved in cryptocurrency scams in 2021.
An investigation into a YouTuber revealed a phishing scammer who worked with Monkey Drainer and other drying services to steal more than $1.5 million.
