Crypto Influencer's Pump-and-Dump Scheme Triggers 98.4% ALT Market Cap Collapse as 45 Wallets Exploit Social Media Hype

A major cryptocurrency influencer, known as “Crypto Beast,” has been linked to a $11 million pump-and-dump scheme involving the altcoin ALT, according to an investigation by digital forensics expert ZachXBT. The incident, which has drawn attention to influencer-driven manipulation in crypto markets, involved a coordinated social media campaign followed by a mass sell-off that triggered an 98.4% collapse in ALT’s market capitalization, from $190 million to $3 million. Analysis traced the crash to 45 interconnected wallets associated with the individual, which liquidated holdings after a period of aggressive promotion across platforms like X (formerly Twitter) and Telegram.

The pattern of activity mirrors previous schemes attributed to the influencer, including projects such as ALPHA, RICH, and YE. Each case followed a similar strategy: generating hype to attract retail investors, then exiting positions once prices surged. The ALT incident exemplifies how high-profile actors exploit algorithmic engagement and trust in social media to manipulate markets. Following the dump, the token’s value plummeted, leaving investors with significant losses. ZachXBT’s investigation highlighted the use of multiple wallets to obscure the scale of the sell-off, complicating regulatory efforts in an ecosystem often lacking standardized oversight.

The case underscores vulnerabilities in decentralized markets, where anonymity and low liquidity in altcoins make them prone to targeted exploitation. Unlike major cryptocurrencies, smaller tokens are frequently manipulated through concentrated ownership and speculative behavior. Analysts note that the absence of strict anti-money laundering (AML) protocols in crypto complicates enforcement, as bad actors can obscure their activities across multiple addresses. This incident may reignite calls for tighter regulations on influencer disclosures and market conduct, particularly for tokens with centralized ownership structures.

Investors are increasingly urged to exercise caution, scrutinize wallet activities, and rely on independent investigators to verify claims. The ALT crash serves as a stark reminder of the risks of blind trust in influencers, even those with substantial followings. While “Crypto Beast” has not faced formal charges, the forensic evidence compiled by ZachXBT represents a critical step in identifying and holding accountable those who exploit market dynamics for profit. The event has also intensified broader debates about accountability in crypto, with stakeholders calling for clearer guidelines on influencer marketing and investor protections.

As the industry grapples with the fallout, the ALT token remains in freefall, illustrating the fragility of markets where hype can be weaponized as easily as it is celebrated. The incident highlights the urgent need for transparency, community-driven accountability, and regulatory frameworks tailored to the unique challenges of digital assets. For now, the crypto community continues to monitor whether this case will catalyze systemic reforms or serve as a cautionary tale for unregulated speculative practices.