ZachXBT Warns About Token2049 Sponsors, Raises Credibility Concerns: Are They Trustworthy Or the Next JPEX Scandal?

ZachXBT Flags Token2049 Sponsors Over Credibility Concerns

The crypto investigator ZachXBT has raised serious concerns about Token2049’s sponsors, urging caution as the event approaches.

In an alert shared on his Telegram group, he warned that major sponsorship deals at such events do not always indicate credibility.

Zach criticised the event organisers for their lack of due diligence on financial backers, stating,

“Just because someone is a title or platinum sponsor does not mean they are credible.”

Source: Investigations by ZachXBT Telegram

Spacecoin’s Ambitious Claims Raise Questions

One of the key sponsors under scrutiny is Spacecoin, listed as a title sponsor for Token2049.

The project presents itself as the world’s first DePIN initiative powered by satellites, claiming to provide global 5G internet coverage to nearly 2.9 billion unconnected individuals.

However, Zach referred to it as a “botted project,” a term in crypto that often implies artificial activity or misleading engagement.

Despite this, Spacecoin’s name appears alongside established exchanges like OKX, BloFin, MEXC, KuCoin, and Binance in the event’s sponsorship lineup.

Centralised Exchanges and Market Makers on the Radar

Zach’s report also placed Bitunix, JuCoin, WEEX, and DWF in the “sketchy” category, highlighting various concerns about these companies.

For the listed exchanges, Zach said he conducted checks on their teams, work history, and regulatory compliance, with many failing these tests.

• Bitunix, a crypto exchange registered in Saint Vincent and the Grenadines, was recently flagged by South Korea’s Financial Intelligence Unit (FIU) for operating without proper registration while actively targeting Korean investors.

• JuCoin, formerly known as Jubi, has a history of ownership changes and regulatory shifts. While the platform has applied for a Virtual Asset Service Provider (VASP) license in Taiwan, it remains unregulated in the US, EU, or other major jurisdictions.

• WEEX, a futures exchange established in 2018, is registered in Singapore but lacks regulation from any authority with strict compliance standards. Concerns have also been raised on social media about frozen accounts and unexplained KYC issues.

Meanwhile, DWF, a well-known Web3 investor and market maker, has come under scrutiny following past accusations of wash trading and a recent allegation from Vite Labs.

Vite Labs Accuses DWF of Rug Pulling Development Funds

On 27 March 2025, Vite Labs publicly accused DWF of misappropriating funds meant for development, stating,

“The funds left for development got rugged by @DWF market making service and @binance delist decision.”

The company announced it would only keep the network running for as long as possible, cancelling all roadmap plans.

However, when pressed for further details on how DWF allegedly “rugged” the funds, Vite Labs did not provide an explanation.

DWF previously faced allegations of wash trading in May 2024, with reports claiming it manipulated over $300 million in trades across multiple tokens in 2023, including Yield Guild Games’ YGG token.

Binance denied any wrongdoing at the time, stating that its transactions were proprietary and above board.

History of Controversial Sponsors at Token2049

ZachXBT’s warning follows past incidents of questionable entities securing sponsorship at Token2049, sometimes leading to significant fallout.

A notable example was JPEX, a platinum sponsor at the 2023 event in Singapore.

Hong Kong authorities flagged the exchange as an unlicensed entity with “suspicious features” during the conference.

The aftermath was severe—approximately 1,400 complaints were filed, leading to 70 arrests and the freezing of HK$230 million in assets.

Police Commissioner Raymond Siu Chak-yee later confirmed the total amount involved had risen to HK$1.6 billion, marking it as one of Hong Kong’s largest financial fraud cases.

Despite legal actions, JPEX continued to impose exorbitant withdrawal fees on its users.

Several social media influencers linked to the exchange were also arrested for promoting the platform.

The Risks of Sponsorship as a Credibility Tool

In the crypto space, sponsorship deals are often leveraged to build credibility, sometimes masking serious regulatory or operational issues.

This tactic was infamously employed by Centra Tech, a fraudulent project that used event sponsorships and celebrity endorsements to raise $32 million through an ICO.

The project falsely claimed partnerships with Visa and Mastercard before its co-founder, Sohrab Sharma, was sentenced to eight years in prison.

A more high-profile case was FTX, which strategically donated millions to political campaigns to maintain regulatory influence.

Before its collapse in 2022, FTX contributed $1 million to a super PAC linked to Mitch McConnell.

However, the exchange was later exposed for misappropriating $10 billion in customer funds, leading to the conviction of its former CEO, Sam Bankman-Fried, in 2023.

As Token2049’s first event of the year approaches in April, ZachXBT expects his list of questionable sponsors to grow, reinforcing the need for attendees to remain vigilant.