TL;DR
- Blockchain investigator ZachXBT alleges insiders tied to LAB control more than 95% of the token supply while coordinating with a market maker linked to several past crypto trading operations.
- The report also points to opaque tokenomics, discounted OTC agreements, and exchange-linked wallet activity involving hundreds of millions of LAB tokens.
- Despite the allegations, ZachXBT warned traders that concentrated ownership could still create additional upside pressure against short positions.
LAB has come under scrutiny after blockchain investigator ZachXBT released a detailed report claiming the project’s insiders maintain overwhelming control over the token supply. The allegations target the AI-focused trading terminal behind LAB, which recently reached a fully diluted valuation close to $6 billion despite ongoing questions surrounding its circulating supply data.
1/ An investigation into the opaque private loans/OTC, unilateral vesting changes, market maker coordination, unknown float, and >95% supply control behind $LAB's recent pump to $6B FDV.
Here's why @LABtrade_ represents everything wrong with the current meta of retail extraction… pic.twitter.com/L2U5kW1EUd
— ZachXBT (@zachxbt) May 14, 2026
The investigation appears at a time when AI-related crypto projects continue attracting speculative capital across centralized exchanges and private OTC markets.
ZachXBT Raises Questions About LAB Token Distribution
According to the report, wallets connected to LAB insiders allegedly control more than 95% of the token supply through treasury holdings, exchange-linked addresses, and OTC arrangements. ZachXBT argued that publicly available data from platforms such as CoinGecko and CoinMarketCap presents conflicting float figures, while LAB’s own documentation lacks a detailed supply breakdown.
The investigator also connected LAB founders Vova Sadkov and Mark to Eesee, a previous crypto project that received criticism from some investors after development activity slowed. On-chain transactions included in the thread reportedly linked several wallets tied to The Lab Management Ltd., a British Virgin Islands entity associated with LAB operations.
One agreement highlighted in the investigation referenced private lending deals carrying monthly interest rates of up to 7.5%, with repayments denominated in LAB tokens at market prices. ZachXBT claimed wallets tied to those contracts later interacted with addresses involved in LAB buybacks and centralized exchange deposits.
LAB OTC Structure And Exchange Flows Draw Attention
The report also examined LAB’s OTC activity. Screenshots shared by ZachXBT showed discounted token allocations offered through Telegram and WhatsApp groups, including some tranches reportedly sold at discounts ranging from 60% to 80%.
Between March and May 2026, more than 226 million LAB tokens allegedly moved into exchange-linked wallets connected to Bitget. Roughly 100 million LAB tokens later flowed into a group of newly identified addresses. ZachXBT stated that the activity resembled liquidity strategies previously observed in projects such as RIVER, RAVE, and SKYAI.
Despite the controversy, LAB continues recording active trading volume across several major exchanges. Some market participants dismissed the investigation as part of the speculative nature of low-float crypto assets, while others argued the findings exposed risks tied to concentrated token ownership.
