Key Takeaways
On-chain investigator ZachXBT on May 14 published a detailed analysis accusing the team behind the AI-powered trading terminal LAB of controlling more than 95% of the token’s supply, engineering a pump to a $6 billion fully diluted valuation. The report alleges a coordinated scheme involving an unknown market maker and several centralized exchanges.
"This is everything wrong with the current meta of retail extraction on major centralized exchanges," ZachXBT said in a post on the social media platform X, introducing the investigation. The on-chain sleuth laid out evidence suggesting that retail participants have been trading a token whose available supply and ownership are fundamentally misrepresented.
The investigation highlights several key data points, including the deposit of 226 million LAB tokens to Bitget addresses between March and April 2026. It also details a hidden supply structure involving over-the-counter sales to influencers at discounts ranging from 60% to 80%, with terms requiring promotion ahead of their token unlocks. On-chain data further linked a signer on a LAB team multisig wallet to an address involved in the previous alleged manipulation of the RIVER token.
These allegations cast a new light on LAB’s recent price action, which saw the token surge over 300% following its mobile app launch on May 3. The extreme insider supply concentration, however, means the price remains susceptible to further manipulation. ZachXBT explicitly warned against shorting the token, as insiders could use their supply control to liquidate such positions. The investigator called on exchanges, including Bitget, Binance, and Gate, to freeze insider-held funds.
The investigation delves into the background of LAB’s founder, Vova Sadkov, and a co-founder identified as Mark. According to ZachXBT, a prior project by the pair, Eesee, left many investors feeling abandoned after the team shifted focus.
A core component of the alleged manipulation is a tiered system of OTC deals and loans. A private loan contract signed by Sadkov carried a 7.5% monthly interest rate, while pitches to public buyers and key opinion leaders (KOLs) offered the token at steep discounts. The most recent offer sat at an 80% discount, contingent on extensive social media promotion. These OTC deals created a large, non-public supply overhang that was not visible to retail traders.
ZachXBT’s analysis traced funds from LAB’s public buyback wallet and other project-related addresses to what were identified as Sadkov's personal accounts on Bybit and Gate. These same exchange accounts allegedly received funds from the earlier Eesee project.
The report also claims a direct on-chain link between the LAB project and a market maker playbook previously used to manipulate tokens such as RIVER, RAVE, and MYX. A wallet that funded a key signer on LAB’s multisig contracts previously received more than $12 million in RIVER tokens amid that token's alleged manipulation, suggesting a repeated pattern of activity. As of the report's publication, the LAB team has not publicly addressed the accusations.
This article is for informational purposes only and does not constitute investment advice.
