ZachXBT, a popular blockchain sleuth known for exposing scams and unethical practices, has spotlighted four traders involved in a suspicious pump-and-dump scheme related to the PAAL AI project.
1/ Part 2 of a breakdown into how @trader1sz @Trader_XO @TraderNJ1 @PetaByteCapital pump and dumped 6 figures of PAAL on their followers. https://t.co/ujzgq9ryzo pic.twitter.com/XNazpQok02
— ZachXBT (@zachxbt) September 10, 2023
As a pseudonymous on-chain researcher and crypto detective, ZachXBT continues to play a pivotal role in exposing scams and unethical behavior, ultimately contributing to a safer and more transparent crypto environment.
ZachXBT Unveils Deceptive Practices
The first part of ZachXBT’s exposé focuses on Trader NJ and PetaByte. These traders have come under scrutiny for allegedly deceiving multiple crypto projects. They reportedly leveraged the names of influential figures to acquire free tokens from projects like CBOT and BabyShib, only to later dump them on their unsuspecting followers.
Several Telegram text and audio messages reveal that Trader NJ had asked for a significant portion of the CBOT token supply to promote the project alongside PetaByte. Messages from the BabyShib team confirm a discussion in which Peta and NJ negotiated marketing efforts in exchange for 3.5% of the token supply.
Soon after hyping the tokens, they reportedly began unloading them for over $115,000 within just a few days, despite the project’s low market cap. This action contradicted their earlier statement of having “no intentions of selling anything anytime soon.”
While Trader NJ insisted, “I don’t do paid promotion and never have,” texts from Telegram messages and BABYSHIB tokens received as compensation suggest otherwise. The BabyShib team claimed Peta failed to fulfill the original agreement by not involving other influencers and selling almost immediately after receiving the tokens.
Trader SZ and Trader XO’s Involvement
This exposé by ZachXBT is only Part 1 of a larger investigation. Part 2 delves into the involvement of additional traders, including Trader SZ and Trader XO, in a similar pump-and-dump scheme, this time targeting the PAAL AI token.
We wanted to address recent developments and reaffirm our commitment to transparency at PAAL.
Many initial supporters joined based on speculation, but we have consistently delivered functioning products and successful partnerships over the last month and are pleased with the…
— PAAL AI 🧠🤖 (@PaalMind) September 7, 2023
While Trader XO and SZ initially distanced themselves from the CBOT controversy, it was revealed that they actively participated in promoting PAAL.
“Trader SZ received 4 million PAAL from their team on August 10 and began shilling a few days after. Shortly after that was when he began dumping,” ZachXBT maintained.
Meanwhile, NJ and Peta’s wallet addresses from previous shilling activities for CBOT and BabyShib were also linked to their promotion of PAAL, making it easier for the detective to trace their actions. Trader SZ, in particular, received multiple honorary non-fungible tokens (NFTs) in his wallet.
3/ How did I confirm which one was Trader SZ wallet?
0xa040e70e576b239aa699c4d5f42ae431611ce6c7
Well he received multiple honorary NFTs to this wallet pic.twitter.com/okuKF81ObN
— ZachXBT (@zachxbt) September 10, 2023
This is not the first time ZachXBT will be exposing irregularities among crypto traders, investors, and influencers. They have also investigated other types of scams in the crypto space, such as rug pull, pump-and-dump schemes, exit scams, and wash trading. Their work has been praised by many in the crypto community, and they have been called a “crypto vigilante” and a “digital detective.”
