When a co-founder of Tether, a prominent figure in the industry, launches a new token, and on-chain analysts uncover a $17 million profit scheme among a small group of insiders, trust turns to suspicion. The $STBL token case sets a troubling precedent in the crypto ecosystem, raising concerns about transparency and integrity.
On September 17, 2025, blockchain analytics platform Bubblemaps sounded the alarm. In a viral tweet, they revealed troubling activity surrounding the STBL token, recently launched by Reeve Collins, who had co-founded Tether in 2014. The analysis showed that the five main trading wallets were all interconnected and had already made over $10 million in profits.
Using its transaction visualization technology, Bubblemaps highlighted a cluster of suspiciously funded wallets that purchased the token in bulk at low prices before selling as the general public invested, attracted by Collins’ name. What initially began as a warning signal transformed into damning evidence a month later.
On October 19, Bubblemaps published a devastating update: the same five addresses had sold all of their $STBL tokens, pocketing a total of $17 million. The chart accompanying the tweet shows a series of massive sales (red dots symbolizing sales) coinciding with the token’s price collapse. The pattern unmistakably resembles an orchestrated pump and dump scheme.
The irony is bitter. The STBL project was presented as a revolution, a “stablecoin 2.0” backed by real-world assets (RWA) with community governance. Reeve Collins promised a fairer model that would share yields with users, unlike first-generation stablecoins. However, on-chain data suggests that the first to be “rewarded” were a small group of insiders, at the expense of retail investors.
This affair casts a shadow not only on the STBL project but also on the reputation of its founder. It reminds investors of the harsh reality of the “crypto Wild West”: due diligence is non-negotiable. Tools like Bubblemaps become essential for navigating a market where marketing promises can hide perfectly orchestrated insider maneuvers. For $STBL investors, the lesson came at a high cost.
Buy your crypto securely on Bitget and earn a $10 bonus here:
Related topics:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
