LAB allegedly used special OTC discounts, influencer deals and coordinated exchange activity to support price growth, ZachXBT claimed in investigations.
Crypto sleuth ZachXBT accused the team behind LAB of using opaque OTC trades, insider-controlled supply, coordinated market-making activity, and hidden opening structures to push the token’s recent rise to a nearly $6 billion fully diluted valuation.
In his latest post on LAB code has crashed by more than 30% in 24 hours.
LAB faces new scrutiny
According to Investigator, LAB was launched in October 2025 by Vova Sadkov and Mark after their previous venture, Eese (ESE), reportedly left many investors dissatisfied once the team moved on. he He explained There is still no clear public breakdown of LAB token allocation, with CoinGecko, RootData, and CoinMarketCap all displaying different circulating supply numbers, while LAB’s own documentation reportedly does not provide any detailed allocation data.
ZachXBT said its on-chain analysis indicates that insiders likely control more than 95% of the token supply. He also claimed that the LAB team unilaterally changed the entitlement terms for participants in Legion’s public auction from a three-month ramp to a nine-month ramp, as he cited an email screenshot shared by a user.
Separate complaints from creators who claimed they were still waiting for marketing payments months later were also mentioned in the results. ZachXBT also shared details from a draft of a private loan contract linked to The Lab Management Ltd., a British Virgin Islands company allegedly linked to Vladimir Sadkov.
The agreement reportedly provided loans with a monthly interest rate of 7.5% over six months, with repayment in LAB tokens at the market rate in the event of default. The wallet associated with the contract was allegedly later used for public LAB buybacks and was linked on-chain to another wallet involved in a separate Wildcat loan.
Hidden OTC trades and insider activity
ZachXBT also claimed that funds related to LAB were sent to exchange accounts allegedly linked to Sadkov, which had previously received deposits linked to Eese. The investigator even claimed that several OTC and loan arrangements had been made privately since January 2026.
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According to screenshots and claims shared in the post, some of the deals included OTC allocations discounted by 60% with closeouts, guaranteed discount structures that recalculate monthly, and influencer-focused allocations with discounts of up to 80%. Some agreements allegedly require influencers to publicly support LAB before unlocking their tokens.
These hidden arrangements created supply risks that retailers could not track publicly, according to ZachXBT. He also linked one of the signatories associated with LAB multisig wallets to an insider believed to be connected to prior RIVER token processing activity.
According to the findings, insiders deposited 226 million LAB tokens into addresses linked to Bitget between March and April 2026 before withdrawing approximately 100 million LAB tokens between May 11 and 12 to ten separate wallets. Most of the LAB spot activity appears to be focused on Bitget, while Binance and Gate have also been used in derivatives and alpha markets, ZachXBT said. He called on exchanges including Bitget, Binance and Gate to freeze the alleged internal profits or remove the token altogether.
ZachXBT had it He grew up Similar concerns surrounding the SIREN token occurred earlier this year after the asset rose from around $0.40 on March 10 to an all-time high of $3.65 by March 22 before eventually collapsing to $0.53.
