Just as turmoil in the cryptocurrency markets shows no sign of abating, a new insider trading scandal looms on the horizon. Bitcoin is struggling to hold the $64,000 threshold, and prominent on-chain investigator ZachXBT has announced plans to unveil one of his biggest exposés yet on February 26. All signs point to a week of intense volatility and anxiety for the crypto sector.
The Impending Exposé
ZachXBT is a household name whenever a major crypto hack or scandal erupts. Widely considered one of the most skilled blockchain detectives, his reputation has even attracted the attention—and sometimes the unwanted scrutiny—of IRS agents seeking his expertise for training. On social media, ZachXBT highlighted the stakes of his upcoming announcement:
“A large-scale investigation into one of the crypto industry’s most lucrative businesses, where numerous employees have profited illicitly through insider leaks, will kick off on February 26.”
Years ago, the public’s main interest in such revelations was pure curiosity or moral judgment. Now, however, anticipation of these exposés has developed into a trend with participants jockeying for better positions in prediction markets, eager to profit from the fallout. This shift reveals just how deeply speculation has permeated the world of digital assets.
The Suspicions Mount
Recently, the USD1 stablecoin faced heavy selling pressure, causing it to drop below its intended dollar peg. The Trump family is associated with the launch of this stablecoin, which once made headlines due to allegations involving half a billion dollars in bribes linked to the UAE. The trigger for the depegging appears linked to Eric Trump, who began deleting social media posts related to WLFI—a coin surrounded by intrigue.
A crypto analyst known by the pseudonym Retardmode published screenshots of these deleted tweets, suggesting ZachXBT’s exposé could center on the WLFI/bonk project:
“This is clearly about WLFI/bonk. Eric Trump deleting WLFI-related posts now is no coincidence. The Trump administration isn’t just accused of looting the treasury—they are also allegedly colluding with some of the worst actors in crypto, squeezing every penny they can.”
Suspicion deepened when, a few hours after these revelations, WLFI issued an official statement claiming they were under coordinated attack:
“This morning, USD1 came under a coordinated attack. The attackers hacked the accounts of WLFI’s co-founders, paid influencers to spread FUD, and opened major short positions against WLFI to profit from the ensuing chaos.
Despite these maneuvers, the plan failed. Thanks to USD1’s robust peg and redemption mechanisms with full 1:1 backing, operations remain stable. No scammer can undermine the long-term commitment of the WLFI team and its founders to USD1.
We urge users to rely only on verified channels for accurate information.” – @worldlibertyfi
So, what comes next? ZachXBT is poised to drop his exposé on February 26, which could either confirm or dispel suspicions about the Trump family’s involvement. The recent surge of negative rumors around Binance suggests it too could feature in the forthcoming disclosures. As the world’s largest crypto exchange by trading volume, Binance is a frequent target for rivals seeking to exploit any perception of internal corruption, particularly if allegations of insider trading emerge. If such rumors intensify around WLFI or Binance in the days leading up to Thursday, further market losses could follow.
Speculation has also spread regarding Binance’s alleged role in the roughly half-billion-dollar WLFI share sale conducted through USD1 in the UAE, adding another layer of risk to the unfolding drama. In the meantime, an extremely volatile meme coin dubbed USD0 has entered the market—its fluctuations closely tied to recent events and more alternatives likely to emerge if USD1 continues to struggle. The loss of USD1’s peg has triggered concern that it could become worthless, stoking even more uncertainty—and volatility—across the sector.
