Prominent on-chain detective ZachXBT today issued a stark warning to crypto investors, urging them to "strongly stay away" from Arbitrum-based Rain Protocol. The warning is backed by meticulous on-chain tracking. ZachXBT's report shows that Rain Protocol's team addresses have overlapping funding sources with several failed crypto projects, most notably TOMI and Data Ownership Protocol (DOP). Both projects raised substantial funds before collapsing, leaving investors with heavy losses, and their financial networks still leave traces on the blockchain.
Hard Evidence of On-Chain Fund Overlap
ZachXBT's analysis focused on several crucial transactions. The data reveals that a Rain Protocol deployer-related address (0xa35e...b8bc) and a TOMI team multisig-related address (0xa810...d5d1) both transferred funds to the same destination address (0xbac1...4fb0) in October 2025. Even more striking, an address that had previously received funds from a DOP multisig wallet also sent money to that same address. This convergence of funds from multiple projects into one address is extremely rare for independent operations and strongly suggests a common, undisclosed controlling entity or pooled funds.
The immutability of blockchain data provides hard proof of these links, and ZachXBT's findings tie Rain Protocol closely to projects with a severe history of problems. For any DeFi protocol that emphasizes decentralization and community trust, such funding overlaps represent a serious credibility crisis, as they hint at potential behind-the-scenes manipulation and inappropriate ties.
Founder's Shadow and Token Price Manipulation
ZachXBT further uncovered that TOMI, DOP, and a series of other troubled projects can all be traced back to one Israeli founder — Moshe Hogeg. Hogeg has a notorious reputation in the crypto industry, having been detained by Israeli police on suspicion of orchestrating multiple crypto asset frauds. Many of his ventures ended in lawsuits and investor losses. The indirect connection of a person with such a fraudulent background to Rain Protocol adds significant ethical and legal risk to the project. Even if the Rain Protocol team claims independence, the on-chain financial relationships severely undermine its credibility.
As for the current state of the project, Rain Protocol's total value locked (TVL) on Arbitrum is approximately $27.2 million, but this figure is almost entirely composed of its native token, lacking stablecoin or mainstream asset backing. Such a single-asset structure means that if the native token price crashes, the protocol's locked value would evaporate instantly, leaving users unprotected. More alarmingly, ZachXBT pointed out highly suspicious signs of artificial price manipulation — Uniswap V3 LP addresses linked to the deployer may be used to create fake liquidity and price charts, luring unsuspecting retail investors. This type of manipulation, where liquidity pools are controlled to sway token prices, is not uncommon in DeFi and is often associated with "exit scams."
Based on the accumulated on-chain evidence and background investigation, ZachXBT repeatedly reiterated his stance of staying away from Rain Protocol, urging investors to seriously evaluate the potential safety risks to their funds. In the crypto market, early warnings from on-chain detectives can often save investors from massive losses, and the alarm raised over Rain Protocol should be heeded with extreme vigilance.