On-chain investigator ZachXBT has released a new report on LAB, arguing that the token’s sharp run-up and collapse showed clear signs of coordinated manipulation. LAB surged more than 500% in early May, then dropped 84%. After his latest post, the token fell by another 40%+ over the following 24 hours.
The report ties together wallet activity, OTC arrangements, loan contracts, and exchange flows. Its central claim is blunt: insiders linked to the project may have controlled more than 95% of LAB’s token supply, while public information on distribution and circulating supply remained unclear and inconsistent across platforms.
Supply concentration sat at the center of the case
According to the investigation, LAB was founded by Vova Sadkov and Mark. ZachXBT noted that their earlier Eesee ($ESE) project had already faded, with the token price almost back to zero from its high. In LAB’s case, the market still lacks a clear token allocation breakdown, and official materials do not provide detailed circulation data.
He wrote that since LAB launched, there had been only a small number of transfers above $150,000 involving parties outside the internal circle. At the same time, nearly 69% of total supply was said to remain outside circulating markets, leaving a large overhang that could be sold into price strength at any time.
OTC offers and loan terms were allegedly tied to promotion
ZachXBT also alleged that the LAB team had been offering OTC deals and loan contracts to selected participants since January 2026. Co-founder Mark was said to have looked for OTC buyers in public groups. Some offers included loans carrying 5% monthly interest, while other allocations were offered at a 60% discount with a five-month lockup.
One private contract cited in the report showed a six-month loan with a 7.5% monthly rate, signed by The Lab Management Ltd., a shell company represented by Vova Sadkov. In the event of default, repayment would be made in LAB tokens at market value. ZachXBT said the borrowing wallet in that agreement matched an address used in LAB’s public buyback activity and also had an on-chain link to another Wildcat loan.
He further claimed that some proposals offered KOL capital access at discounts of up to 80%. There was a catch. Those involved were allegedly required to post supportive content multiple times before unlock, with blacklisting mentioned as a consequence for non-compliance.
Hundreds of millions of tokens moved through Bitget
On exchange-related flows, the report said insiders deposited as many as 226 million LAB tokens to Bitget between March and April 2026. Those tokens then sat dormant for a period. On May 11 and 12, nearly 100 million LAB were withdrawn from Bitget to 10 newly created addresses, with an estimated value of about $480 million at the time.
ZachXBT said most spot trading activity in LAB was centered on Bitget, while Binance and Gate were also used in the broader operation. The traced flows allegedly showed LAB-linked funds ending up in Vova Sadkov’s personal accounts at Bybit and Gate, raising questions about mixing company and personal funds.
He added one more connection: signers tied to several LAB multisig wallets appeared to have funding links to an insider connected to the RIVER token manipulation case. That person had previously sent more than $12 million worth of RIVER tokens to two centralized exchanges.
Exchanges have not publicly said whether LAB is under review
In his post, ZachXBT called on Bitget, Binance, and Gate to address the matter publicly. The source material also notes that he criticized Bitget earlier this week, accusing the exchange of tolerating questionable projects behind the scenes, comments that circulated widely in the crypto community.
As of the information provided here, Binance and Bitget had previously said they opened investigations into the RAVE manipulation case. For LAB, no exchange had publicly stated whether a formal review had begun. The dispute now centers on concentrated supply, off-exchange contracts, and the money trail visible on-chain.