Blockchain researcher ZachXBT has unveiled compelling evidence that involved four prominent online traders in a PAAL AI pump-and-dump scheme that potentially reaches 2.67 million followers. These traders; TraderNJ, PetaByte, XO and Trader SZ allegedly manipulated the market for personal gain. The price of altcoin PAAL AI rose from $0.017 to an all-time high of $0.0451 within weeks. The leaked messages show a network of influencers working closely. Namely, ZachXBT, known for exposing crypto scams, continues its mission to bring transparency to the industry. Here are the details…
Altcoin project was purchased before the promotion
On September 11, ZachXBT claimed in a series of posts on X (formerly Twitter) that TraderNJ, PetaByte, XO and Trader SZ were involved in a pump-and-dump scheme aimed at profiting at the expense of their followers. ZachXBT posted a diagram on social media showing various transactions between crypto wallets, with a particular focus on the PAAL AI project. He also explains that shortly after receiving the altcoin from the project, Trader SZ started promoting the token on social media:
Trader SZ received 4 million PAAL from his team on August 10 and started ‘shilling’ a few days later. Shortly after that it started dumping.
1/ Part 2 of a breakdown into how @trader1sz @Trader_XO @TraderNJ1 @PetaByteCapital pump and dumped 6 figures of PAAL on their followers. https://t.co/ujzgq9ryzo pic.twitter.com/XNazpQok02
— ZachXBT (@zachxbt) September 10, 2023
PAAL AI price had increased
The price of PAAL AI rose from $0.017 on August 10 to hit an all-time high of $0.0451 by September 3. The allegations emerged with the publication of various Telegram texts and voice messages. A message allegedly from Petabyte appeared in the group chat. “Many of these men are our personal friends,” the message said. I can be sure that they will be willing to get on board with our word.” He also pointed out that his combined followers will reach 2.67 million organic followers. ZachXBT has gained a reputation for boldly exposing fraudulent projects and scams in the crypto industry.
However, this caused him to face legal difficulties. On June 17, it was revealed that Jeffrey Huang, known on Twitter as MachiBigBrother, is suing ZachXBT over a research paper he wrote in 2022. ZachXBT stated that the lawsuit was “baseless and an attempt to curtail freedom of expression.” Anonymous Blockchain researcher promised to challenge legal action. However, he sought help from the community to cover the costs involved. In just a few hours, it raised over $600,000 in total. Notable names such as Binance CEO Changpeng ‘CZ’ Zhao and Kraken founder Jesse Powell are also among the prominent supporters. Both ZachXBT and Huang announced on their social media accounts on August 15 that Huang has withdrawn the case.
