Blockchain detective ZachXBT is warning merchants to keep away from Rain Protocol after claiming to have uncovered a sample of suspicious on-chain exercise surrounding the undertaking.
Within the newest replace, ZachXBT described the prediction market undertaking, which he stated has an $8.8 billion market capitalization and ranks among the many high 15 crypto belongings, as having few customers, restricted product traction, no notable backers, and a workforce with little established historical past within the business.
Hyperlinks to Failed Crypto Tasks
In response to his on-chain investigation, wallets tied to the RAIN workforce share funding trails with the Information Possession Protocol (DOP) and TOMI ecosystems through the Gems scorching pockets and several other centralized change deposit addresses, which suggests an overlap between the initiatives.
As proof, ZachXBT highlighted two “mud” transactions that have been despatched to the identical tackle on Oct. 14, 2025. In response to his findings, a pockets linked to the RAIN deployer despatched a small switch to the tackle at 3:31:47 p.m. UTC, whereas a pockets he related to the TOMI workforce multisig and a centralized change deposit tackle despatched one other mud transaction to that very same vacation spot 36 seconds earlier. He additionally stated that the recipient pockets later obtained funds from one other tackle that had beforehand been funded by a DOP multisig.
In a separate transaction path, the investigator stated one other pockets transferred funds to an tackle that later used the identical centralized change deposit tackle because the DOP deployer.
ZachXBT additionally claimed RAIN’s market exercise exhibits indicators of on-chain worth manipulation, and alleged that addresses tied to the deployer used Uniswap V3 liquidity swimming pools whereas routing spot transfers by means of the Gems scorching pockets. He additionally took purpose at RAIN’s valuation, whereas highlighting that its decentralized autonomous treasury, Enlivex, a Nasdaq-listed firm, introduced a $212 million treasury technique in November 2025 although, in response to him, the undertaking is nowhere close to the size of prediction market platforms like Kalshi or Polymarket.
He cited DefiLlama knowledge exhibiting RAIN has $27.2 million locked on Arbitrum, however stated all the quantity is held in its personal illiquid token and that the protocol generates solely about $1 million in annual charges. TOMI, DOP and Sirin Labs initiatives are all linked to controversial Israeli entrepreneur Moshe Hogeg, who was arrested in 2021 and later confronted police allegations over a $290 million crypto fraud scheme.
Kraken Score Minimize to B-Tier
ZachXBT stated he has lowered his score for crypto change Kraken from S-tier to B-tier over “lack of due diligence” earlier than itemizing what he described as “low-quality, manipulated tokens,” together with M, RAIN, RIVER and RAVE. He additionally criticized Kraken’s public disclosure of its current safety breach, and added that it didn’t point out compensation for affected customers.
By comparability, he famous that exchanges resembling Coinbase and Bybit prioritized compensating prospects after their very own safety incidents. ZachXBT additionally raised his bounty to as a lot as $100,000 for insiders who can present paperwork or chat logs associated to alleged centralized change market manipulation schemes.
The put up ‘Keep away from Rain at All Prices’: ZachXBT Raises Pink Flags Over $8.8B Prediction Market Mission appeared first on CryptoPotato.