Crypto investigator ZachXBT recently found himself in hot water. He faced accusations of orchestrating a rug pull after withdrawing liquidity from a memecoin. This raised eyebrows about the value of his contributions in the crypto world.

ZachXBT has built a reputation as a skilled investigator. He’s known for exposing scams and helping government agencies track down major frauds. His work has even been cited by the United Nations Security Council when discussing threats from North Korean hackers.

The trouble started on January 21 when ZachXBT pulled liquidity from a memecoin. Some accused him of executing a rug pull. Now, a rug pull happens when developers abandon a token by pulling out its liquidity. However, this memecoin was questionable from the get-go. It was an unsolicited gift from anonymous creators who seemed to want to use ZachXBT's name for credibility.

ZachXBT believes the backlash stems from past disputes. He said, “The allegations mostly come from influencers I posted about previously for dumping on followers with tokens they were paid to promote.” The memecoin was allegedly launched to reward him for his work. The creators transferred half of the token supply to him. He then added single-sided liquidity, which means he deposited just one type of token into a liquidity pool. This pool earned fees in Solana's native token, SOL. In total, he withdrew 16,348.95 SOL, worth about $4.3 million, sending some to trading firm Wintermute while redepositing 96 million Justice for ZachXBT (ZACHXBT) tokens back into the pool.

The timing of these accusations was quite surreal. Just as ZachXBT was in the spotlight, US President Donald Trump launched a memecoin that briefly hit the 15th spot in global cryptocurrency market rankings. One user joked that ZachXBT would be the “busiest person in crypto” for the next four years. ZachXBT replied with frustration, noting the lack of financial rewards for his services. He said, “One of my biggest regrets here is not prioritizing making money.”

Then came the controversy over his own memecoin incident. He sold some of the tokens he received as gifts, raising questions about whether this was a smart move or a misstep from a once-respected figure. Blockchain investigator SomaXBT defended him, stating that ZachXBT didn’t promote the coin to his followers and merely took profits from a token that exploited his name.

In the larger picture, memecoins often serve as tools for speculation and gambling. However, they can also express gratitude toward influential figures. Take Ethereum co-founder Vitalik Buterin, for example. He often receives unsolicited token donations, which he has pledged to donate to charity.

Recently, ZachXBT’s social media activity has sparked concerns about whether he might be stepping back from his investigative work. His efforts have earned him enemies, and critics are always on the lookout for any slip-ups. Mikko Ohtamaa, founder of an algorithmic trading firm, noted, “Scammers will always try to tarnish his reputation as revenge.”

For now, ZachXBT remains active. On January 23, he shared a video exposing a scammer, and on January 24, he warned “newbie degens” about a trend where hackers target X accounts to promote fraudulent tokens. He pointed out that scammers are shifting their focus from government accounts to celebrity profiles, and surprise announcements are often red flags. Ironically, the recent buzz around the US president’s memecoin launch may have unintentionally legitimized future fake token schemes.