Supplement Company Just SCAMMED Their Customers

Added: 2026-05-26

[00:00:00]At some point they decided to launch a memecoin called Labs Lab BZ. They promised partnerships, collaboration.

[00:00:09]There is a problem with this though.

[00:00:11]>> Disclaimer: This video is educational and informative in nature. Do not contact anyone shown in this video.

[00:00:15]Also, this video is discussing steroids.

[00:00:16]>> Do not use steroids.

[00:00:18]>> This is entirely for educational and entertainment purposes only. Today, we're looking at how a real supplement company allegedly used a memecoin and fake celebrity promos and a classic pump and dump playbook scheme to extract money from their own fans who are already paying them for supplements.

[00:00:35]Now, this isn't legal advice. It's not a definitive allegation. And really, as it goes in America, everyone's innocent until proven guilty. But in this video, I'm basically going to be sharing with you public records and reporting from the blockchain, which is a complicated matter, and it's a pretty disturbing picture in which it is painting.

[00:00:53]>> Should be interesting.

[00:00:54]>> Now, Insane Labs is a very real supplement company that's quite popular, especially within like the UFC community, but also the bodybuilding community. You've likely seen some of their advertisements or products or maybe even using some of their products.

[00:01:08]They're actually pretty successful. They have what I would assume to be fairly good revenue already and do pretty well for themselves being that a lot of their athletes are pretty big in which they're sponsoring and likely paying quite a bit of money and on top of that they're very likely making quite a bit of sales at some point. Basically what had happened was they decided to launch a memecoin called Labs Lab Z. The pitch was relatively simple for them. Basically tie in a memecoin to the existing sports and supplement brand. Add some social media hype and you've got what seems like a cool and fun way for fans to participate in the upside. And their basic description of the coin was essentially as follows. They promised partnerships, collaboration with fitness related businesses, supplement companies, vetted celebrities, and online influencers to promote the use of Insane Labs token. These partnerships can increase the adoption and create a network of effects within the fitness community. And the hope was to use Insane Labs token in realworld scenarios, essentially in the use of social media, content marketing, and influencer collaborations to reach targeted audiences effectively, and have a form of payment to transmit between those two demographics, business and the influencer. They were hoping to foster a community, have events that were hosted, contests, creative opportunities where token holders could network with each other and share their experiences and talk more about fitness. And I'm I'm not kidding. This is direct from their own description. As they say, a seamless and intuitive user experience will encourage adoption and engagement of token holders. There is a problem with this though. The coin is now basically worth less than nothing. I mean, it is quite [ __ ] It's lost basically all it's worth. And on the surface, it initially sounded quite harmless, I guess, to the people who don't understand what pumps and dumps are or how they work. But what starts with a goofy memecoin that was preached to have some utility as they typically end up just became a classical situation of market manipulation. Now, I know cryptocurrencies is not something that I talk about too often. We talk about fitness, but because this is tied to a supplement company, I figured why not discuss it.

[00:03:27]Understanding the nuance of these schemes and how they kind of work and the underlying mechanisms becomes really important as we continue to this discussion, though. So, I'm going to try to do my best to explain what's going on. In a pump and dump, insiders either create or accumulate a big supply of a cheap asset. Then they pump the price with hype, false claims, misleading marketing, and dump their holdings on people who believe the story. The value transfer is actually quite simple. So, I'm just going to again break this down a bit. The insiders hold a large amount of the coin at almost zero cost. So, they are the ones who start it. They buy into a very large sum of the coin when it is virtually worth nothing.

[00:04:07]>> They then build hype who attracts buyers that pay with real coins. Those might be soul, ethereum, USDC, Bitcoin, whatever.

[00:04:16]Insiders then used that hype which inflated the value of their coin to sell the large sum that they had purchased when they started the coin, converting their essentially free and cheap tokens into very real and expensive assets.

[00:04:31]Once they're done selling, the hype of course dies. People see that there's some kind of market manipulation going on. the price collapses and regular holders before they can even really react are left with basically next to nothing. They're they're left with a coin that's virtually worthless.

[00:04:46]Technically, nothing magical is happening here. There isn't anything under the covers that they're doing that's super technical. They're just front running a marketing campaign and then using that to leverage income essentially. And this is very important to understand because essentially according to public reporting and onchain analysis which means the data records of where funds were transferred and how they were transferred. A rough sequence of events begins to become very clear based on the data that we have and the company may contest some of this or all of it. I'm not sure. The brand launches a memecoin. This was in June of 2024. Insane Labs decides that hey I'm not making enough money through the supplement company. So, let's launch this thing and try to see what kind of revenue we can generate. Of course, with the I guess add-on that it has some form of utility that is of course completely theorized and just a you know, I don't even know like it the fact that it was going to be used as this utility for influencers and marketing and all this other stuff and networking. It just seems like it was a pipe dream that somebody made up to sound really great so that people would buy it. I'm not so sure. The branding alone gave some people trust because of course they have customers who are buying their products quite regularly. They have big influencers under their name. It seems pretty easy to get behind. The liquidity pool is created so that people can trade labs for soul and other assets.

[00:06:03]Essentially, this is basically early on the company is putting both some of the coin and then other currency into a liquidity pool to basically boost the value of the coin and have value to be able to be traded essentially. But what began to happen is Lab's token, its market value soared from initially 3 million to 15 million at its peak. The token is now of course nearly worthless.

[00:06:27]We're going to talk about why that is.

[00:06:29]But understanding that these numbers were very very large is very very important. And the reason that this coin pumped as fast as it did, it went from 3 million to 15 million at its peak is because the group for the cryptocurrency had a telegram. And in this telegram group, the owners as well as their customers would communicate with each other, build hype around the coin and establish a presence. But what began to happen very quickly was that this coin, I guess it was getting associated with people at a much higher echelon than the company was actually batting at.

[00:07:02]Essentially, what had happened was they faked Hazbula, if you don't know who he is, he's the really short guy that is often in the fighting space, being in this Telegram group. And this happened during May 16th. However, the problem with this is the real Hazbula doesn't speak English and he wouldn't join a Telegram group for some random cryptocurrency with virtually no point behind it. And yet in this Telegram group, he was talking, you know, relatively simply to people. He was sharing GIFs. He was communicating through supposedly Google Translate as they say, but it seemed to be a little bit too personal, I guess, like the the text that he was sending weren't very Google Translate like. But that wasn't where things stopped. Uh, essentially the guy came out and said all of these things, okay, he was impersonating Hzbullah. It wasn't a real profile. The guy actually never got paid by the group. So, he decided to come out and dox the group for what they were doing and show the chats. Essentially what he said is that they began to get his friends to join the group as well and impersonate other people. In this instance, which is pretty radical, a fake Ultimate Fighting Championship president, the UFC, Dana White, joined the group for some random reason and one of the UFC's fighters, Nate Diaz, supposedly joined the group. Now, these couple of people basically said that they do this stuff often for payment, just to hype up coins, and usually it's a joke for them and they're just having fun. and the company wanted them to just jump in as a joke, but it genuinely started to add quite a bit of value to the coin. They were responding in those chats. They were talking in the Telegram group. People were buying into the fact that these individuals were actually real. So, the validity of the fact this coin was going to shoot up in value became tangible essentially. Like if we goting Dana White joining the Telegram group saying he's backing the coin, it's more than likely that that has a lot of investment, a lot of money behind it.

[00:08:57]And so the people who are buying it are going to buy more and then tell their friends about it. Even worse, the owner of Insane Labs, Dustin, actually even pretended to have a fake FaceTime chat with Dana White about the project, which he then posted in the chat as a screenshot saying, "Hey, thanks Dana White." basically implying that he was talking to him and he's shouting him out, which is pretty wild. Then they had a fake pump for four free tickets to an upcoming UFC event, which Dana White told the group that he was going to give away four of those tickets to anyone in the group. And then the Insane Labs team basically rode on this. They posted it on Twitter and everything else. And again, Labs token began to rise even as large as 17% during this period of time, further establishing that they probably had some kind of validity even though it was fabricated. Over the next month, a total of 15 soul, which is quite a bit of money, were sent to the impersonators wallets, which can be seen on the actual blockchain. And because these individuals came out and established themselves as to be who they were, the impersonators, it's pretty easy to verify that, hey, they were paid by the same wallet as Insane Labs, and they have those wallets. They have the numbers, so they obviously are the real people. Meanwhile, Labs token investors were misled into believing that the celebrities, the endorsements were real, the payments were just because of the endorsements for those celebrities.

[00:10:20]Eventually, as you would imagine, the truth started to expose itself and the hype eventually died down. The price fell astronomically fast. And then one of the impersonators suggested that they add the lead singer in Nickelback to the chat, Chad Kroger, which like why would any of these people, how random they are, first of all, but why would any of these people invest into this randoming supplement companies memecoin, man?

[00:10:45]People are soing dumb. I swear that rose the price of the coin 17% after it was beginning to fall, getting it a little bit of uh lifetime back. However, the token fell over 74% over the next 2 weeks. Shortly after that fall of 74%, the group was deleted. The Telegram group and Insane Labs claimed on their official X account that the group had been deleted because they received death threats. Now that it's all over and the impersonators or pranksters say they have no qualms about impersonating celebrities and verified who they are, it's pretty obvious what happened.

[00:11:19]Essentially, if we look at the coin's value, it is worthless now. It is completely worthless. And what had happened was during all of the hype, the reason the value kept continuing to decline periodically throughout its duration of lifetime was because the company was very likely selling large amounts of this coin off to make money.

[00:11:41]And obviously when you do that, when you sell a massive amount of stocks, investors get worried. This happens in the stock market. And that too happened here because suddenly there's a lot more of these coins in circulation. Now, as big of numbers as these are, it is a pretty medium-sized scam. Like, there's not a lot of money to be made in this.

[00:11:59]Several tens of thousands of dollars, maybe hundreds of thousands of dollars was made. But for a company that is doing millions in supplement sales per month, this seems like chump change to be quite honest. And I just don't understand why you would even go through doing this and having impersonations of celebrities in a Telegram group to falsely increase the value of a meme coin. Now, from everything I'm reading, from looking at the blockchain, it does seem like this was very real. However, this is all alleged. Maybe it just happened to be the company did get scammed and they didn't have any communication with these fraudulent individuals impersonating celebrities.

[00:12:36]But that just seems so weird because they also have chats with those individuals independently. So, you would assume that they did know what they were doing and they did pay these people to directly impersonate individuals in their Telegram groups. And the reason that I'm bringing you this all today is because I find it extremely extremely conflicting. Why is a supplement company doing a pump and dump? They make a [ __ ] ton of money. They have loyal audience members. Like they they have people that buy their products every single month, every single time. What is the need for doing this? It's really a shame because this happens like all the time. We talked about Cali Muscle doing something very similar. When anybody ever gets a little bit of hype, they're going to try to sell you something that isn't real essentially. And this happens to be with Cali Muscle. I think it was like Cali Coin or Musclecoin or some dumb [ __ ] Then he did the exact same thing with this coin. Then this company is now doing it with this coin. Granted, this was a bit of time ago. It still has really been unspoken of and at all within the timeline of, you know, Insane Labs and their marketing profile and as well as, you know, people calling them out for it. Just seems to kind of disappear like a poof, like a fart in the wind. But it is pretty dubious. The coin is still live. I mean, you can still technically buy it, but there's zero buying and selling going on within the past month almost. They're quoted to have a 49 million circulating supply, and virtually no one owns that supply.

[00:13:58]So, I don't know. It's just it's a shame. Like, Insane Labs should be a really good company, a robust company, but the pursuit of more income, I guess, always tends to corrupt. I don't know if any of this is true, of course. I'm just uh this is all alleged information, so it is what it is. I have to say that on YouTube. It's part of the business, but it is sure a shame. And I I wanted to make this video cuz no one's talking about it. It's well documented.

[00:14:20]Investigations are actively being done and have been done by these private blockchain communities themselves. And it does seem pretty sketchy to be completely honest. And just me, I guess, going out on a limb here saying just please be considerate of who you purchase things from. Understand that there are definitely conflicting interests in the community. even if it's the fitness community and it seems so harmless or whatever. Sometimes companies have very bad intentions. And the reason that this comes to my mind is like, okay, so if they're willing to do this, what else are they willing to do?

[00:14:52]Because believe it or not, supplements are very, very easy to accidentally mislabel or put the wrong things in or have the wrong amounts of certain things in or put other things in like steroids into these supplements. We've seen it time and time and time again, even in some of the most recent data when supplements are pulled and tested.

[00:15:10]Oftent times, I think it's like 64% of the time, they don't have what they claim to have in it. Whether that's dosing being incorrect or actually just compounds completely missing or they added pharmaceutical substances to their products. It's a wide arrangement of different deranged activities in the supplement industry, but it's very unregulated. And I think a lot of people think that it's regulated, but it is truly the wild wild west still within the United States. So again, if they're willing to pump and dump aing cryptocurrency, what are they willing to do with their supplements that people are buying in mass on a regular basis?

[00:15:40]But anyways, I hope you enjoyed the video. If you did, consider liking, subscribing, and commenting down below if you know anything about any of this.

[00:15:47]Maybe you were an investor early on, whatever the case might be, let me know.

[00:15:51]I'd be keen to see what your thoughts are. Maybe I'm all wrong. Maybe these investigators are all wrong as well, and their reports are wrong, but it seems quite unlikely. Unlikely. All right, I'll catch you in the next video. Heat.

[00:16:14]Hey, heat. Hey, heat.