Khamzat Chimaev Faces Crypto Scam Allegations After Launching his own coin

LockerRoom Team

06 Jul 2024

UFC star Khamzat Chimaev has come under fire from both the UFC and crypto communities following the release of his own cryptocurrency, ‘Smash.’ Online security researcher and pseudonymous scam investigator ZachXBT has uncovered evidence suggesting a potential scam involving Chimaev's crypto asset.

Recently, Chimaev sought advice from his followers on the best cryptocurrency to invest in. Shortly thereafter, he announced the launch of his own crypto, ‘Smash.’ However, ZachXBT revealed allegations of insider trading in a post on X (formerly Twitter) on July 4.

In a pointed comment on Chimaev’s post, which included the token’s address, ZachXBT accused Chimaev and his team of incompetence. He claimed they "directly linked the team wallets with the insider wallets buying up 78% of the supply" and questioned why they would "instantly nuke [their] reputation with meme coin scams." ZachXBT further elaborated on the alleged scam, explaining that 71% of the insider and development team wallets were funded by the same Ethereum (ETH) address. He provided the address ‘0x8ae40d1e89cd7333efe42a35969f0b8548fe54a8’ on Solana (SOL) as an example.

The researcher also listed 24 addresses that purchased 712 million SMASH tokens, accounting for 71.2% of the total supply. These tokens were then dispersed to additional addresses, complicating the tracking of the supply. ZachXBT shared a visual representation of the alleged scheme alongside his findings.

Additionally, ZachXBT posted a screenshot of the SMASH/SOL price chart, highlighting a dramatic decline of 18.81% within a single hour, from nearly 0.02 SOL to 0.0003513. The token is currently trading at 0.00048 SOL.

Scams are unfortunately common in the crypto sphere, and even celebrities like Chimaev can be implicated, whether knowingly or unknowingly. American podcast host Joe Rogan and well-known scam investigator Stephen Findeisen, a.k.a. Coffeezilla, discussed this issue back in March 2023. They noted that numerous famous individuals had endorsed the now-collapsed crypto exchange FTX and discussed allegations against wrestler Logan Paul for his involvement in the crypto project Cryptozoo, which also faced scam accusations.

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As the situation unfolds, both Chimaev and his followers are left to navigate the complexities and potential pitfalls of the cryptocurrency market.