Blockchain investigator ZachXBT has publicly accused high-risk trader James Wynn of hypocrisy and deceptive trading practices.
In a May 28 post on X, ZachXBT alleged that Wynn, who recently condemned scam tokens tied to his name, had previously engaged in similar pump-and-dump tactics involving memecoins.
The controversy started after Wynn warned his followers about a token launched in his name, stating that a group he referred to as “the cabal” was exploiting his identity to launch scam projects.
According to him:
“The cabal are launching coins in my name and rugging them. This is a heavily farmed coin and will go to zero. Do not buy.”
However, ZachXBT pushed back, alleging that Wynn had previously promoted and dumped similar low-cap tokens.
The blockchain investigator accused the trader of “gambling with stolen money” on Hyperliquid, implying that Wynn profited from unethical deals while publicly denouncing such behavior.
Who is James Wynn?
Wynn is a self-proclaimed high-risk leverage trader who has quickly become one of the most prominent figures in crypto social media circles over the past months.
His aggressive trading on Hyperliquid, a decentralized derivatives platform, has turned heads, particularly after he took a 40x leveraged position on Bitcoin as it surged towards new highs.
This weekend, Wynn built billion-dollar trades on both long and short sides of the market, further gaining high spread attention.
These high-stakes bets have propelled him into the spotlight. Data from the blockchain analytics platform Lookonchain shows that he executed 39 trades over the past three months, with 17 turning a profit, for a 45% success rate.
The firm stated that his trades generated over $2 million in fees for the decentralized platform, and he walked away with over $25 million in profit.
Beyond trading, Wynn has also framed himself as a defender of decentralization and ethics.
He once claimed he turned down a $1 million monthly offer from Bybit, citing concerns over centralized exchange practices. Instead, he touted Hyperliquid, saying:
“[Hyperliquid] is our only choice to revive the trust in this industry.”
Old allegations resurface
Despite Wynn’s anti-scam rhetoric, past allegations continue to cast doubt on his reputation.
In 2024, a crypto user, Dylan, published a detailed thread accusing Wynn of covertly requesting private allocations in the BabyPepe token.
Screenshots in the thread allegedly showed Wynn asking for 2% of the token supply in exchange for helping the coin reach a $20 million valuation.
After a brief mention in his Telegram group, Wynn reportedly sold the tokens for a quick $68,000 profit and then severed all contact with the team.
Beyond BabyPepe, Wynn has also faced backlash for pushing other low-cap tokens such as ELON and WYNN, which are allegedly linked to his identity.
The trader has also been linked to Alameda Research, the defunct crypto market-making arm of the failed FTX exchange.
FTX creditor activist Sunil Kavuri noted that Wynn’s early wallets received ETH from Alameda and suggested Wynn may have benefited from insider tips.
According to Kavuri, Wynn received 6,000 ETH in 2020 from Alameda. The FTX creditor activist claimed that this early capital helped fund Wynn’s memecoin trades and large-scale positions that now define his public profile.
He stated:
“James Wynn trades like Alameda on steroids because he probably was a trader there.”
Mentioned in this article
Credit: Source link