ZachXBT exposes Kraken's failure in due diligence: allowing Memecore to manipulate token prices and artificially inflate the market cap of $M to $18 billion.

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While shouting anti-scam slogans with one hand, Kraken is listing manipulated tokens with the other? The US exchange Kraken just posted about its achievements in assisting law enforcement to recover $45 million, only to be immediately slammed by the renowned on-chain sleuth ZachXBT. ZachXBT presented hard evidence, questioning why Kraken listed $M (Memecore) last year—a token with clear signs of internal manipulation—allowing stakeholders to pump its FDV to $18 billion and withdraw massive funds through multiple wallets. (Previous coverage: After RAVE plummeted 90%, ZachXBT warned: SIREN, MYX, COAI, PIPPIN, etc., are also suspected of price manipulation and are highly suspicious.) (Background: RAVE plummeted 90% overnight! ZachXBT exposed that insiders controlled 90% of the supply; Binance and Bitget have launched investigations.) The PR campaign by the cryptocurrency exchange Kraken has unexpectedly turned into a community PR crisis. The incident began with a boastful post published by Kraken on April 20, 2026. The exchange claimed that it actively participated in a global law enforcement operation called "Operation Atlantic," successfully helping to identify over $45 million in criminal proceeds and protecting more than 20,000 potential victims. In the post, Kraken righteously emphasized: "Protecting clients is not just a regulatory obligation, it is how we operate." However, this self-righteous statement immediately drew heavy fire from ZachXBT, the on-chain sleuth most feared by scammers in the crypto space. Why did Kraken list $M (Memecore) on July 3, 2025 for spot and how did it pass due diligence? $7.9M in suspicious Kraken withdrawals to 18 newly created addresses with 11.7 $M sitting total (valued at $39.8M now). Insiders have manipulated the price to $6B market cap ($18B FDV)… pic.twitter.com/pL7oroZ4lJ — ZachXBT (@zachxbt) April 20, 2026 ZachXBT directly quoted Kraken's post and pointed his finger at the $M (Memecore) token, which Kraken listed for spot trading on July 3, 2025. He bluntly asked the exchange's executives: "How exactly did this token pass your internal Due Diligence?" According to ZachXBT's investigation, $M is a project clearly riddled with internal manipulation and false prosperity: - Absurd Valuation: Insiders clearly manipulated the price, forcibly pushing $M's market cap to $6 billion, with a fully diluted valuation (FDV) as high as an outrageous $18 billion. Kraken is one of the few major platforms in the market providing spot liquidity for it. - Hollow Fundamentals: The "achievements" the team has been promoting everywhere recently actually only consist of a mere $66 million in total Launchpad trading volume and thousands of "disposable users" bought through Incentivized InfoFi campaigns, with no substantive ecosystem progress. To substantiate his accusations, ZachXBT attached three detailed on-chain transaction screenshots and fund flow tracking charts to his post, clearly listing the paths of the fund transfers: First, an address suspected to be controlled by the Memecore team (0x6f1f…) received 200 million $M during the Token Generation Event (TGE). On July 3, 2025, the day Kraken announced the listing, the address transferred 5.3 million $M directly into two of Kraken's deposit wallets. Even more suspiciously, after the listing, Kraken saw abnormal withdrawals totaling $7.9 million. These funds were precisely transferred to 18 newly created on-chain addresses. ZachXBT made all 18 addresses public, pointing out that these mysterious addresses currently hold a total of 11.7 million $M (valued at $39.8 million at current prices). ZachXBT's move this time not only tore off the mask of the $M (Memecore) project team but also severely damaged Kraken's compliance image. His implication is very clear: while the exchange loudly promotes its cooperation with law enforcement to catch scammers, it simultaneously lists highly centralized, manipulated, low-quality tokens on its own platform for retail investors to hold the bag. This "due diligence" standard is undoubtedly a severe double standard. As of now, Kraken has not yet provided a direct response to ZachXBT's accusations and on-chain evidence.

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