A major scandal is rocking the online crypto scene after blockchain sleuth ZachXBT revealed that prominent influencer Crypto Beast secretly sold more than $11 million worth of ALT tokens only days after heavily promoting the project to his followers.
A Pump, Then a Dump
On-chain records show a series of large transfers from wallets linked to the influencer just hours after ALT Token’s price spiked due to heavy retail buying. Over the previous week, Crypto Beast had tweeted repeatedly about ALT, describing it as a “next-gen DeFi revolution” and urging his 1.2 million followers to “ape in before it’s too late.”
According to ZachXBT’s investigation, the influencer received a massive allocation of ALT tokens in a private deal months earlier. When the token’s price rocketed following his posts, he offloaded his holdings across multiple exchanges, raking in $11 million while retail investors scrambled to buy at inflated prices.
ZachXBT’s Evidence Trail
Known for exposing illicit actors in the industry, ZachXBT published a detailed thread linking Crypto Beast’s public wallets to the transactions. Screenshots from blockchain explorers showed identical wallet IDs, timestamps matching his tweets, and direct traces to centralised exchange accounts.
ZachXBT described the situation as a classic example of market manipulation. “Promote a low‑cap token, drive up demand, then dump your entire bag on your followers. These actions hurt retail and undermine trust in the space.”
A Familiar Pattern
The case has reignited debate about influencer culture in crypto. In 2021, a wave of similar pump‑and‑dump scandals emerged during the meme‑coin mania, with influencers failing to disclose paid promotions or pre‑allocations. Regulators in both the US and UK have since issued warnings that crypto endorsements must comply with advertising standards and financial‑promotion laws.
Despite these warnings, enforcement has been inconsistent, and token endorsements continue to flood social platforms. Fintech lawyer Sarah Vaughan described the situation as unregulated. “If someone with a million followers can still do this in 2025, we clearly need stronger consumer protections.”
Fallout for ALT Token
The impact on ALT Token was swift and brutal. After peaking on Wednesday, the token plunged 42% in 24 hours, wiping out hundreds of millions in paper gains. Angry investors accused Crypto Beast of betraying them on X and Discord, with some threatening to take the company to court.
The influencer has yet to respond publicly. ALT’s development team issued a brief statement distancing itself from the sales, saying, “ALT Labs has no control over individual token holders. We remain committed to building our roadmap.”
The Bigger Picture
For a market that prides itself on transparency, the episode is another reminder that hype often masks risk. The conflict between influencer marketing and investor protection remains unresolved as millions continue to enter the crypto market every day.
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