On July 13, an entity withdrew 17.9 million LAB tokens worth approximately $7.2 million from Bitget and routed them to a KuCoin deposit address, triggering a sell-off that crashed the token's price by 35% within minutes. On-chain investigator ZachXBT has traced the activity back to an April allocation of 196 million LAB from the project team to the same entity, raising concerns about coordinated selling and a lack of transparency from the LAB team.
The July 13 Dump and Its Aftermath
Minutes after the 17.9 million LAB arrived at KuCoin, 5 million tokens were transferred to a separate wallet and sold through Aster's spot trading platform. LAB dropped from $0.34 to $0.22, leaving retail holders with a suddenly devalued asset. ZachXBT noted that the speed and size of the sales suggest an attempt to exit a large position before the market could absorb it, rather than routine profit-taking.
The remaining LAB from the initial withdrawal still sits in KuCoin wallets, indicating that selling pressure may not be over. ZachXBT warned that until those tokens move away from exchange sell orders, the situation remains unresolved. A subsequent transfer of 30 million LAB worth $8.3 million from a Bitget hot wallet to a different KuCoin deposit address was seen as an obfuscation attempt following earlier reports.
The April Allocation and Team Accountability
Tracing the entity's wallet history, ZachXBT found it received over 196 million LAB directly from the project team in April. This massive allocation, months before the coordinated exchange deposits, gives the entity significant influence over LAB's price. The terms of the transfer—whether team allocation, advisory grant, or partnership deal—remain undisclosed by the LAB team.
ZachXBT called on the LAB team to publicly explain the April allocation and the subsequent selling, emphasizing that the community deserves answers. The investigator noted that the entity's wallet routing changes after his reports suggest it is actively trying to hide its trail, but the earlier on-chain transactions are permanently documented.
Ongoing Risks for LAB Holders
For LAB holders, the July 13 price drop appeared to be ordinary market volatility, but the on-chain evidence reveals a deliberate sell-off. The entity's remaining tokens represent a supply overhang that could trigger further selling. ZachXBT will continue monitoring the 30 million LAB in the second KuCoin wallet and any new movements. He advised holders to follow the investigation closely and await the team's response before making decisions.