ZachXBT Exposes Jake Paul’s Partner in Alleged Crypto Rug Pull Scandal
Crypto investigator ZachXBT just threw a knockout punch at the business partner of YouTube star-turned-boxer Jake Paul—accusing him of orchestrating a classic 'rug pull' that left investors holding empty digital bags.
The Accusation Lands
No fancy footwork here. The allegation is blunt: a project linked to Paul's associate promised the moon, gathered funds, and then the developers vanished—poof—taking the liquidity with them. It's the crypto world's oldest grift, dressed in new hype. ZachXBT, known for his blockchain forensics, laid out the transaction trail for all to see.
Celebrity Crypto: A Risky Ring
This isn't the first time a famous face has been tied to a dubious token launch. The pattern repeats: celebrity endorsement, frenzied buying from fans, and then a sudden, silent exit. It turns out a verified social media account doesn't verify integrity—just another lesson in 'trust no one, verify everything' that the crypto-savvy already know by heart. Due diligence? Often replaced by blind fandom.
The Fallout and the Fight
The crypto community is now watching closely. Will there be legal repercussions, or just another scandal that fades from the timeline? Calls for accountability are growing louder. Meanwhile, the incident serves as a stark reminder: in the wild west of digital assets, a famous backer might just be the shiny lure for an old-fashioned trap. It's almost cynical how predictable these plays have become—another case study for the 'greater fool theory' in action.
ZachXBT highlights failed projects linked to the Paul brothers
ZachXBT highlighted several failed projects that have been run by the Paul brothers in the crypto industry. He mentioned projects like CryptoZoo, Animoon, Sacred Devils, STICKDIX, and Dink Doink that have lost more than 99% of their peak value. Aside from dozens of publications linking the Paul brothers to scams and rug pulls, there is the issue of Jake Paul’s promotion of TRX without disclosing compensation.
Despite the comments, WOO didn’t back down from his claim that the project runs no founder rug pull risk. He even repeated a bullish price prediction for the new token. Still unconvinced, ZachXBT said, “The bot placed the sells, not the dev,” joking about the excuse Woo could invent on the day that he eventually dumps his token. In fact, he also sounded unconvinced that Woo’s project hadn’t already sold some of the tokens gotten from its founding allocation.
The researcher cited three sales, highlighting swaps from the memecoin to other digital assets, which would violate Woo’s disclosure promise to pre-announce insider sales for operations. On the other hand, Woo and Jake Paul had been business partners for a long time, with the pair co-founding a venture capital firm in 2021 and working together on a men’s personal care brand. As a Stanford graduate and a professional, Woo knows the implications of his promise to pre-announce sales and predict 0% risks.
The Paul family in the negative spotlight
The Paul family has done little to steer away from public scrutiny in the past few days after Logan Paul was accused of faking a $1 million Super Bowl bet on Polymarket. Paul was filmed placing what appeared to be a $1 million bet on the New England Patriots beating the Seattle Seahawks and winning the coveted prize. However, ZachXBT and numerous onlookers have claimed that he did not go through with the bet as his account had no money in it.
In addition, ZachXBT also pulled up a list of the top bettors within the market and showed that none of them matched the bet made by Paul. He called the MOVE “yet another Logan Paul scam,” a comment that possibly referenced the detailed crypto project CryptoZoo, where victims lost tens of thousands of dollars, and led to numerous lawsuits, some of which are still ongoing. ZachXBT also speculated that there is some sort of relationship between Paul and Polymarket that is not being disclosed.
The crypto sleuth shared one of Paul’s live streams, filmed days earlier, that showed the influencer trying to promote Polymarket in a way that ZachXBT described as inorganic. Meanwhile, Polymarket is still battling various legal challenges in courts in the United States. The platform recently launched a lawsuit against the state of Massachusetts, attempting to prevent it from shutting down its sports prediction markets.
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