Blockchain Investigator Accuses Four Crypto Traders of Pump-and-Dump Scheme

According to CryptoPotato, blockchain investigator ZachXBT has accused four well-known crypto traders – TraderNJ, PetaByte, XO, and Trader SZ – of participating in a pump-and-dump scheme, allegedly profiting from the gains at the expense of their followers. The crypto industry is known for its influencers who often engage in shady promotion deals without transparency, which can harm both projects and their followers.

ZachXBT has gained a reputation for uncovering fraudulent projects and scams within the cryptocurrency industry. His latest exposé focuses on Trader NJ and PetaByte, who are suspected of engaging in deceptive practices with several crypto projects. They are accused of using the identities of influential individuals to obtain free tokens from projects such as CBOT and BabyShib, and then offloading them onto their unsuspecting followers. Evidence from Telegram text and audio messages show that Trader NJ had requested a significant portion of the CBOT token supply for promotional purposes alongside PetaByte. The BabyShib team provided messages that confirm discussions where Peta and NJ negotiated marketing efforts in exchange for 3.5% of the token supply.

The second part of the exposé involves Trader SZ and Trader XO in a pump-and-dump scheme similar to the previous one, this time with the Ethereum-based PAAL AI token. Initially, this duo distanced themselves from the CBOT controversy and issued public statements blaming PetaByte and NJ. However, it was later discovered that both Trader SZ and Trader XO were actively engaged in another promotional effort for PAAL. The investigator found that PetaByte and NJ had linked their wallet addresses from their involvement with CBOT and BABYSHIB shills to PAAL, making it easily traceable. Trader SZ received four million PAAL tokens from their team on August 10 and began promoting the token a few days before finally dumping all of his tokens for more than $130k. Trader NJ claimed that his 'PAAL conviction has not changed,' but his wallet had already dumped all of his PAAL for over $120k.