TechFlow reports that on-chain investigator ZachXBT has exposed deceptive activities by TraderNJ1 and PetaByte on the X platform. They allegedly used the names of other KOLs to deceive multiple projects into providing free tokens, which were then secretly sold to their followers. The details are as follows:
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BABYSHIB: Messages between the BabyShib team and TraderNJ1 and PetaByte on Telegram involved 3.5% of the token supply, with claims of no intention to sell. However, they later accepted BABYSHIB as payment and promoted it on X, dumping $115,000 worth of tokens within days, although they currently appear to hold no BABYSHIB. Peta claims not to engage in paid promotions, yet their actions contradict this statement.
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CBOT: The CBOT developer revealed a similar arrangement as with BABYSHIB, where TraderNJ1 and PetaByte requested token allocations and helped bring in other KOLs. PetaByte left the chat group, and TraderNJ1 reportedly deleted message histories. ZachXBT contacted CBOT developer Icarus and provided five wallet addresses that received tokens from the CBOT team, most of which were dumped within 1–2 weeks. TraderNJ or PetaByte did not disclose this information.
