In a significant development within the cryptocurrency exchange landscape, prominent on-chain investigator ZachXBT has levied serious allegations against Kraken, one of the world's leading digital asset platforms. The controversy centers on Kraken's recent decision to list the token Memecore ($M). ZachXBT, known for his meticulous forensic analysis of blockchain activities, publicly accused the exchange of failing to perform adequate due diligence prior to the listing. According to his detailed social media posts, the project's primary claimed accomplishment was generating $66 million in launchpad volume—a metric ZachXBT suggests may be superficial or misleading. He further criticized the project's user engagement statistics, which he alleges were inflated through incentivized campaigns rather than representing genuine organic growth or utility. This public critique is notably aligned with broader, industry-wide initiatives, such as Operation Atlantic, which aim to identify and curb the proliferation of 'InfoFi' projects. These projects are often characterized by prioritizing marketing narratives and speculative information over substantive technological innovation or financial infrastructure. The timing of this allegation is particularly sensitive, as regulatory scrutiny around exchange listing standards and investor protection continues to intensify globally. For a major, established exchange like Kraken, such public accusations from a respected figure in the investigative community could impact user trust and invite regulatory inquiry. The incident underscores the ongoing tension within the crypto ecosystem between the drive for rapid innovation and expansion, and the imperative for rigorous vetting processes to ensure market integrity and protect participants from potentially low-quality or manipulative projects.

ZachXBT Accuses Kraken of Poor Due Diligence in Memecore Listing Amid Operation Atlantic Collaboration

Cryptocurrency investigator ZachXBT has publicly criticized Kraken, alleging the exchange failed to conduct proper due diligence before listing Memecore ($M). In a series of posts, ZachXBT noted the project's only claimed achievement was $66M in launchpad volume and questionable user metrics from incentivized campaigns. His criticism aligns with ongoing efforts to curb InfoFi projects on social platforms.

Meanwhile, Kraken has emerged as a key player in Operation Atlantic - a multinational law enforcement effort targeting approval phishing scams. The operation, involving agencies from the UK, US, and Canada, has seized $12M in assets and identified 20,000 potential victims of smart contract drainer schemes. Kraken provided critical investigative support, including sending team members to work directly with the UK's National Crime Agency.

The exchange's proactive measures included notifying potentially affected users and rapid response to law enforcement requests. This collaboration has disrupted over 120 fraudulent operations, demonstrating Kraken's commitment to security despite the Memecore listing controversy.

ZachXBT Raises Concerns Over Memecore's $M Token Amid Insider Manipulation Fears

On-chain investigator ZachXBT has targeted Memecore's $M token, drawing parallels to the collapse of RaveDAO's RAVE token, which he attributes to insider manipulation across centralized exchanges. The scrutiny follows Kraken's listing of $M on July 3, 2025, with ZachXBT questioning the exchange's due diligence process.

Memecore, a layer-1 blockchain positioning itself for the 'Meme 2.0 economy,' boasts a $6 billion market capitalization for its $M token. Despite its prominence, ZachXBT's analysis suggests potential vulnerabilities reminiscent of past market failures. A $25,000 bounty has been offered for information leading to those responsible.

Kraken's involvement in Operation Atlantic, a multi-agency effort to identify criminal proceeds, adds another layer of complexity. The exchange's token listing practices are now under the microscope, with ZachXBT's inquiry highlighting broader concerns about market integrity.