ZachXBT accuses Kraken of poor due diligence for listing Memecore ($M) amid Operation Atlantic

Kraken has backed “Operation Atlantic,” a March 2026 international crackdown on crypto “approval phishing” scams led by the UK NCA, US Secret Service, Ontario Provincial Police, and Ontario Securities Commission. The operation reportedly uncovered $45M in criminal assets, seized $12M+, and identified 20,000+ potential victims across the UK, US, and Canada. Payward said it also worked directly with investigators and notified affected clients. But blockchain analyst ZachXBT challenged Kraken’s anti-scam reputation soon after. He pointed to Kraken listing Memecore ($M) on July 3, 2025, despite what he calls multiple red flags. ZachXBT cited $7.9M in suspicious transfers from Kraken to 18 newly created addresses shortly after listing, with wallets holding 11.7M $M (about $39.8M). He also alleged a Memecore team-linked address (0x6f1f…ba9) received 200M $M in the TGE and quickly moved 5.3M $M to Kraken deposit addresses. TRM Labs visualization reportedly showed flows from Kraken hot wallets to withdrawal clusters. ZachXBT added that insiders/related wallets controlled ~99.6% of the circulating supply, leaving ~0.0115% for public buyers (roughly $4M max valuation). While $M’s market cap reached ~$6B (FDV sometimes >$18B), on-chain liquidity appeared thin, and Kraken remained one of the few venues offering spot trading for $M. The clash is driving renewed debate over whether law-enforcement cooperation and anti-scam PR align with token listing standards—especially for approvals/phishing risk and exchange due diligence.