Crypto Sleuth ZachXBT Faces Backlash Over $500M Fraud Exposés and Suspicious Donations
ZachXBT, a well-known investigator in the crypto industry, has exposed over $500 million in fraud across various projects. His work, however, has recently come under scrutiny after he received large donations from entities he previously criticised. Questions are now being raised about potential conflicts of interest. In 2023, ZachXBT launched a community defence fund following a lawsuit. The fund received contributions from major players like Binance, Bybit, and Paradigm. Wallets linked to Hyperliquid, a crypto platform, also sent support.
On January 18, 2026, the Hyperliquid Foundation donated 10,000 HYPE tokens to ZachXBT, worth up to $600,000. Shortly after, his critical coverage of Hyperliquid slowed down. Critics have pointed to this timing as a possible sign of influence.
An anonymous developer even sent 50% of the supply of a meme token called $ZACHXBT directly to his wallet. ZachXBT later sold around 16,059 SOL worth roughly $3.87 million in unsolicited meme tokens. Meanwhile, Polymarket wallets allegedly made $1.2 million in profits ahead of one of his posts, though no direct connection was proven.
The crypto community is now debating who oversees investigators when their funding sources overlap with the projects they examine. ZachXBT’s work has led to the exposure of major fraud in crypto, but recent donations have sparked concerns. The timing of Hyperliquid’s contribution and the shift in his coverage have intensified discussions about transparency. As the industry grows, questions about accountability for investigators remain unresolved.
