Web3 Presale Raises Red Flags Amidst Links to Notorious NFT Scams
A recent web3 token presale has sparked intense scrutiny after blockchain investigator ZachxBT warned that the project may be tied to individuals behind some of the most notorious NFT scams, including the failed Squiggles collection and the alleged Raichu scam.
The project, called Web3, announced its presale via its official X account, instructing users to send a specific amount of SOL in exchange for Web3 tokens, which would later be triggered to contributors. According to the announcement, the Web3 price is determined by the amount of SOL shared by the overall offer, and the team emphasized that participants should not send funds from exchange wallets.
According to reports, the project has collected $500,000 in just 3 hours, with less than 12 hours remaining. While the project framed the presale as a step towards fairness and transparency, ZachxBT quickly raised concerns, warning that the project is linked to a team member of the Squiggles NFT carpet and Raichu, both of which have been accused of orchestrating multimillion-dollar scams.
ZachxBT’s Warning and the History of NFT Scams
ZachxBT’s alarm comes amidst evidence of the Squiggles scandal in early 2022, when the project amassed over 230,000 Twitter followers and 360,000 Discord members before a highly anticipated NFT drop. Investigations by YouTuber Coffezilla and others suggested that the founders of the collection were frontmen for a group of serial scammers known as the “NFT Factory LA”, which was associated with several failed projects, including League of Sacred Devils, Lucky Buddhas, and Sinful Souls.
Coffeezilla’s reporting showed that the Squiggles team allegedly manipulated sales volume with “shadow wallets” to create the appearance of demand. A single account was reported to have bought hundreds of wallets, each purchasing three Squiggles NFTs, totaling over 800 ETH, or more than $2 million, before the project declined on secondary markets.
The same network of individuals is connected to Raichu, also known as Ryan, a promoter who connected NFT projects with celebrities and influencers. ZachxBT documented Raichu’s role in several rug pulls, including Baller Ape Club, which brought in $2.6 million before its founder was charged by the US Department of Justice, and Crazy Lemur Club, which disappeared with $320,000.
Web3 Team’s Response to Scam Allegations
The Web3 team has dismissed the allegations as “FUD” (fear, uncertainty, and doubt) and outlined steps to prove their legitimacy. In a public statement, the team argued that suggestions that the token had previously launched were “obviously wrong” and asked critics to “check the chain”. The group also distanced itself from a person named Arsalan, who was accused of collecting donations on their behalf.
According to the statement, the team ended the associated member, refunded the “extremely small” amount, and later returned the entire private sales fund. The project insisted that its founders were privately doxed and described their goal as “the largest index/media outlet in all of crypto”.
The dispute comes amidst a rising wave of crypto scams. Peckshield data shows that hackers stole $142 million in July 2025, a 27% increase from June. India’s Coindcx lost $44.2 million in an insider-assisted attack, while DeFi protocol GMX suffered a $42 million exploit before negotiating a white hat.
A total of $2.2 billion disappeared in 344 incidents in the first half of the year, with wallet hacks accounting for $1.7 billion and cheating accounting for a further $410 million. ZachxBT himself has followed several high-profile scam cases, including the exposure of New York Christian Nieves, who was impersonating a Coinbase support employee to steal $4 million from users.
Read more about the Web3 presale controversy and the history of NFT scams on Cryptonews.
