CZ Abandons Public Wallet After $30 Million Spam Token Frenzy

Zhao urged the community to stop "over-interpreting" his actions. He explained that he was testing the Trust Wallet app and trying to remove junk tokens that were preventing him from finding his BNB balance. His attempt to dispose of the tokens manually produced what he called a Streisand effect.

"The more I burn, the more people will send meme coins to the address," Zhao wrote. He quickly realized the fight was futile. Every transaction triggered false speculation, and new spam tokens arrived at an exponential rate.

To end the manipulation, Zhao decided to empty the wallet completely. All legitimate BNB holdings and associated tokens will be donated to his educational charity project, Giggle Academy. After that, Zhao will stop using the address, turning it into a classic "burn address." Any coins sent there in the future will be locked forever with no possibility of withdrawal.

The incident occurred as Zhao remains under legal restrictions following his sentencing in 2023 for anti-money laundering failures at Binance. He stepped down as CEO but still holds a significant influence in the crypto industry.

Following the announcement, the clone coin's chart reversed sharply. A wave of panic selling drove its market capitalization back down to $5.26 million from the $30 million peak.