ZachXBT Cashes Out Unsolicited Memecoin Allocation for $3.81M in Solana Tokens

Renowned cryptocurrency investigator ZachXBT has converted an unsolicited memecoin allocation into approximately $3.81 million worth of Solana tokens through what appears to be an over-the-counter deal with market maker Wintermute.

Cryptocurrency investigator ZachXBT has realized approximately $3.81 million in Solana tokens from an unprompted memecoin allocation, which appears to have been sold over-the-counter to market maker Wintermute.

An anonymous developer created the token, dubbed ZACHXBT, on the Solana blockchain, allocating half of the total supply – 500 million tokens – directly to a wallet belonging to the blockchain sleuth.

On-chain data reveals that the wallet, labeled ‘investigations.sol’, took steps to maximize value from the unexpected token allocation upon receiving it. The first move was to create a liquidity pool pairing the ZACHXBT token with SOL, Solana’s native cryptocurrency.

As traders began interacting with the newly created liquidity pool, the token’s market capitalization quickly soared to $97 million. However, this peak valuation was short-lived.

Within 24 hours of the token’s creation, blockchain records show that investigations.sol executed a series of transactions to withdraw both ZACHXBT tokens and SOL from the liquidity pool. More precisely, the wallet withdrew 91 million ZACHXBT tokens and 16,059 SOL tokens.

The withdrawn SOL tokens, which are currently valued at approximately $3.81 million, were then routed through an intermediate address before ultimately being credited to a wallet linked to Wintermute, a major cryptocurrency market maker that is known to facilitate large private trades.

ZachXBT later confirmed his involvement in the transactions when contacted by crypto media outlets. He highlighted two key points: he had no prior knowledge of the token’s creation and did not promote or market the token on any social media platforms.

The timing of these events coincides with recent public statements from ZachXBT expressing frustration over the lack of financial compensation for his investigative work. Just one day before the token withdrawal, he posted, “One of my biggest regrets is not prioritizing making money.”

This sentiment arises from several high-profile investigations that yielded no monetary rewards. One notable instance occurred in October 2024, when ZachXBT assisted in recovering funds after a $20 million hack of U.S. government Bitcoin holdings, but the investigator received no compensation for his work.

The crypto community’s response to the token withdrawal has been mixed. Andre Cronje, who co-founded Sonic Labs, voiced support for ZachXBT’s actions, arguing that his years of voluntary contributions to the cryptocurrency space warrant accepting the windfall.

Following the withdrawal, investigations.sol proceeded to burn its remaining ZACHXBT tokens. The token’s market capitalization subsequently declined to approximately $19 million, reflecting the reduced liquidity and circulating supply.

Investor Joey Moose, who is best known for his involvement with Pudgy Penguins, responded to these events by launching a community fundraising campaign. The initiative accepts donations in multiple cryptocurrencies and gathered more than $50,000 in its first hour of operation.

This withdrawal marks one of the larger single-transaction profits observed in recent memecoin events, although it differs from typical cases in that the recipient had no involvement in the token’s creation or promotion.

Prior to these events, ZachXBT had gained recognition as an independent investigator who specialized in exposing cryptocurrency scams and assisting victims in recovering stolen funds.

His investigations frequently provided both law enforcement and the crypto community with critical information.