> For the complete documentation index, see [llms.txt](https://docs.blokiments.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.blokiments.com/investigations/in-depth-investigation-blockstreet.md).

# In-depth investigation: Blockstreet

{% hint style="info" %}
**The investigation took place between June 28, 2026, and July 17, 2026.**
{% endhint %}

We received numerous requests to conduct a comprehensive investigation into the Blockstreet project. Many community members have raised concerns, with some alleging it may be a scam. We also received information suggesting that the same team behind **$MIXIE** is involved in operating this project.

In this report, we will examine the project in detail, investigate the team behind it, perform an in-depth on-chain analysis, and uncover what is really happening. Our goal is to identify the individuals or entities behind the project and present the findings in a transparent, evidence-based manner.

This is a comprehensive report that combines verifiable evidence, on-chain data, and supporting documentation to make the situation clear and easy to understand.

## About the project

On **July 14, 2025**, a new project called **Blockstreet** was [officially announced](https://x.com/BlockStreetXYZ/status/1944792041730224460) on **X:**

<figure><img src="/files/kdTdUzLCYPYB3pNmfX5s" alt=""><figcaption><p>First post on the official X account.</p></figcaption></figure>

Here are some official links about the project:

* Official website: <https://www.blockstreet.xyz/>, <https://block-street.xyz/>
* Documentation: <https://docs.blockstreet.xyz/>
* Official X profile: <https://x.com/BlockStreetXYZ>
* X Community: <https://x.com/i/communities/1944541654683103577>
* Official Telegram Channel: <https://t.me/BlockStreetXYZ>
* Telegram Community: <https://t.me/BlockstreetCommunity> (not active anymore; sending messages is not allowed)
* [Coingecko](https://www.coingecko.com/en/coins/block-4?chart=type%3Dprice%26mode%3Dline%26timeframe%3Dmax)

Based on its official website and social channels, Blockstreet positions itself as the execution layer designed to accelerate the adoption of the **USD1** stablecoin. The project also claims to be the official **USD1-native launchpad**. In addition, Blockstreet states that it empowers founders, investors, and ecosystems to build scalable, compliant, and liquid markets, effectively bridging traditional finance (Wall Street) and Web3.

These are significant claims that require further verification.

At first glance, the website relies heavily on bold promises and marketing language but provides very few concrete details to support its claims. The official documentation also appears to be incomplete and poorly maintained, lacking technical depth, implementation details, and clearly defined use cases. As a result, it is difficult to verify how the project intends to deliver on its stated objectives.

The next step was to verify which **products Blockstreet has actually delivered**. We reviewed the project's Telegram history, X (formerly Twitter) posts, official documentation, and website. Our findings are as follows:

* **Locking Vault:** On **September 19, 2025**, [Blockstreet announced](https://x.com/BlockStreetXYZ/status/1969082930392695039) its [Locking Vault](https://vault.blockstreet.xyz/). The platform allowed users to lock their $BLOCK tokens in exchange for XP (Experience Points). According to the project, XP would unlock additional perks, improve users' positions on the leaderboard, and potentially qualify them for rewards, exclusive access, and future Blockstreet opportunities. However, beyond these broad promises, no tangible utility or value was ever delivered to users who locked their tokens. We found no evidence that XP provided meaningful benefits, nor that the advertised rewards or opportunities were ever implemented. As a result, users effectively locked their tokens without receiving any verifiable utility in return.

<figure><img src="/files/uADqxvVsaHB2Va9WMmQ4" alt=""><figcaption></figcaption></figure>

* **Launchpad**: On **September 30, 2025**, the [team announced](https://x.com/BlockStreetXYZ/status/1973095157550465044) that the Blockstreet Launchpad website was live. However, as of July 2026, we were unable to identify a single project that had launched through the platform. The current [website](https://launchpad.blockstreet.xyz/) consists only of a promotional landing page with an application form for projects. We conducted additional research but found no evidence that a functional launchpad has ever existed or been used. Based on the available evidence, we conclude that the advertised launchpad was never fully operational. It appears to have been primarily a marketing initiative rather than a working product. Consequently, the project's flagship offering has never been successfully launched or demonstrated in practice.

Nearly **one year after the project's launch**, the team has failed to deliver on the core products and functionality it promised. Based on the available evidence, we found no indication that Blockstreet has fulfilled its major product commitments or demonstrated the capabilities promoted in its public communications.

## The Team

Next, we began investigating the team behind the project. The [official Blockstreet website](https://www.blockstreet.xyz/) lists an **eight-member team**.&#x20;

<figure><img src="/files/Bk14GJZHKVyFXafovYaI" alt=""><figcaption></figcaption></figure>

We conducted a more extensive background investigation into each individual to verify their identities, professional histories, and connections to the project. Below is a summary of our findings for each team member.

### Block Street owners

From a publicly available [**Stock Exchange Agreement**](https://contracts.justia.com/companies/appliance-recycling-centers-of-america-inc-7434/contract/1369035/?__cf_chl_f_tk=2.Wh7jFjHPYpgbDh9ht5acbm3GvOeT_Ow4U8t6mcZ0Y-1782932004-1.0.1.1-VRAkLJkQe7t58hqmyoBTNgBgv8M6D.vCIwdUUQTkI5Q) dated **April 20, 2026**, we were able to verify the four original owners of **Block Street**. The ownership information became publicly available as part of the **ALT5 Sigma acquisition** completed in April 2026. As a result of this transaction, the founders listed below are no longer the owners of the company. We examine the acquisition and its implications in greater detail later in this report.

<figure><img src="/files/IFG5pnQNf1SsvAdNA6eR" alt=""><figcaption></figcaption></figure>

* [**Matthew Morgan**](https://www.linkedin.com/in/matthew-lee-morgan) is the **CEO and co-founder** of Block Street and originally held a **40% ownership stake** in the company. During our investigation, we uncovered a significant amount of information about his background and activities. Due to the importance of these findings, we have dedicated a separate chapter later in this report to a detailed analysis of Matthew Morgan.
  * Instagram: <https://www.instagram.com/thematthewmorgan/>
  * Personal webpage: <https://www.matthewleemorgan.com/>
* [**Kyle Klemmer**](https://www.linkedin.com/in/kyle-klemmer/) is a **co-founder** of Block Street and originally held a **25% ownership stake** while serving as the company's **CIO**.
  * Outside of Block Street, Klemmer is the CEO of [Quantum Vision Holdings](https://www.qvhinc.com/), a company focused on developing post-quantum security solutions. He describes himself as an operator with more than 16 years of experience across marketing, operations, and venture development, with a particular focus on emerging technologies, including blockchain and digital infrastructure. Quantum Vision Holdings [was acquired by AlphaGen](https://sedar-filings-primary.thecse.com/000048124/06420859-00000001-000048124-20260331_AIC_NR_Definitive_Agreement-PDF.pdf) in March 2026.
  * During our research, we identified several public appearances that confirm his active involvement with the project, including:
    * An [interview on Decrypt's YouTube channel](https://www.youtube.com/watch?v=yL9ar-QLYxY), where he discussed stablecoins and the Block Street project.
    * An [interview with the VP of Growth at Catapult Trade](https://x.com/letsCatapult/status/2066935330003976487), in which he spoke about Block Street and its vision.
* [**Derek Peterson**](https://www.linkedin.com/in/derek-peterson-4b06469/) served as **Chief Strategy Officer (CSO)** of Block Street and originally held a 17.5% ownership stake in the company.&#x20;
  * Peterson is a seasoned entrepreneur and business strategist with a track record of founding and scaling companies across multiple industries. He is best known as the founder of **Terra Tech Corp**, widely recognized as the world's first publicly traded cannabis company. He also led **ROAM Agricultural**, a climate technology company focused on methane reduction for the livestock industry.
  * At the time of writing, Peterson serves as **Chief Strategist at ALT5 Sigma**.
  * X profile: <https://x.com/DerekAPeterson>
* [**David Nikzad**](https://x.com/Nikzad1111David) served as **Head of Capital Markets** at Block Street. Through his company, [**Orthogonal Thinker, Inc**](https://www.orthogonalthinker.com/)**.**, he originally controlled a **17.5% ownership stake** in the business.
  * According to a [post published on December 11, 2025](https://x.com/search?q=from%3ANikzad1111David%20blockstreet\&src=typed_query), Nikzad joined Block Street as a [strategic sponsor](https://www.linkedin.com/posts/blockstreet-welcomes-david-nikzad-as-head-share-7404657955628834818-dDSv/), bringing experience in capital formation and regulated fundraising. He is a serial entrepreneur and venture investor with more than 20 years of experience in technology, wellness, and public markets. In his announcement, he highlighted his previous work on Reg CF, Reg A, SAFE, and SAFT frameworks, as well as investments in private market platforms such as Republic and EquityZen.

### **Kyle Chasse** as Chief Operating Officer

[**Kyle Chassé**](https://www.linkedin.com/in/kylechasse/) served as **Chief Operating Officer (COO)** of Blockstreet. Public profile data indicates that he became part of the Blockstreet team in **November 2025**, while Blockstreet formally [announced his appointment](https://x.com/BlockStreetXYZ/status/1996324117885194272) as COO on **December 3, 2025**.

Chassé is a Web3 entrepreneur, investor, and content creator with a long history in the crypto sector. He is best known as the founder of **PAID Network** and **MV Global / Master Ventures**, and he also runs the [**Kyle Chassé Crypto** YouTube channel](https://www.youtube.com/@KyleChasseCrypto). According to Blockstreet’s announcement, his role was focused on global operations, ecosystem development, and scaling the platform.

In his own [public statement](https://www.linkedin.com/posts/kylechasse_i-came-back-to-the-usa-for-one-reason-to-share-7401821322932363265-8YPP/), Chassé said he joined Blockstreet to help bring ICO-style opportunities to a broader audience, including retail participants who were previously excluded from early-stage investment access.

### **David Eisenhauer** as Chief Marketing Officer

[**David Eisenhauer**](https://www.linkedin.com/in/david-eisenhauer/) served as **Chief Marketing Officer (CMO)** of Blockstreet. Public information indicates that he became part of the team around **September 2025**, while Blockstreet [formally announced](https://x.com/BlockStreetXYZ/status/1998135927840157916) his CMO appointment on **December 8, 2025**.

Eisenhauer is described as a Web3 growth leader with experience across performance marketing, community building, brand strategy, and crypto adoption campaigns. According to Blockstreet, his role was focused on global marketing, user acquisition, brand expansion, and community growth.

He is also the founder and CEO of **zero Ω**, a Web3-focused growth and marketing agency. His background includes work with blockchain infrastructure projects, RWA platforms, stablecoin companies, Web3 gaming ventures, and other crypto-focused organizations. Within Blockstreet, Eisenhauer was positioned as the person responsible for supporting education and adoption initiatives aimed at connecting capital markets with on-chain finance.

## Down the Blockstreet Rabbit Hole: Matt Morgan, MIXIE, Acquisitions, AI Financial, and the Web of Suspicious Connections

While researching the Blockstreet team and its co-founder, Matt Morgan, we uncovered multiple connections to previous projects and companies, including MIXIE and the later AI Financial acquisition of Blockstreet for $43 million.

These findings revealed several interesting behaviors, patterns, and relationships that require closer examination. To make the full picture as clear as possible, we will present the key events in chronological order, from the earliest connections to the most recent developments.

By laying everything out as a timeline, we aim to provide a clearer understanding of how the project was operated, who was involved, and how the various connections surrounding Blockstreet, MIXIE, AI Financial, and Matt Morgan fit together.

{% hint style="info" %}
The history and connections surrounding this case are complex, so some details may have been missed. However, we made every effort to identify and include as many reliable sources as possible to support the claims presented in this report
{% endhint %}

### Matt Morgan’s Early Days

Before entering crypto and later becoming involved with Blockstreet, **Matt Morgan** built his public reputation in the legal cannabis industry. According to several public profiles and podcast appearances, Morgan came from Montana and initially worked in real estate before the 2008 financial crisis pushed him into a new direction. After that, he entered the medical cannabis market, first in Montana and later in Arizona, where he became involved with **Bloom Dispensaries**, **Reef Dispensaries**, and **Tryke Companies**. Public profiles describe him as a founder or former owner of several large cannabis businesses, while a podcast profile stated that Bloom reached a $100 million revenue run rate and that Reef later grew into a multi-state operation with hundreds of employees.

Morgan was frequently marketed as a major figure in the cannabis space. Some [podcasts and interviews](https://www.youtube.com/watch?v=ILnM-alJB1E) even referred to him as the **“Cannabis King,”** and one later [podcast episode](https://www.youtube.com/watch?v=2_OTWtwoXZQ) described him as having built “over $1 billion” in cannabis companies before moving further into crypto investing and advisory work.

According to the [material reviewed](https://fortune.com/2026/04/30/trump-crypto-ai-financial-alt5-sigma-world-liberty-financial-wlfi-block-street-matthew-morgan/) for this report, Morgan later became increasingly interested in crypto during the mid-2010s and remained connected with **Chase Herro** and **Zak Folkman**, although at the time they were reportedly pursuing separate business paths.

### Mech.com: The early start

One of the earliest visible connections between **Matt Morgan and Kyle Klemmer** appears through Mech.com, a Web3 gaming project built around NFTs, player-owned assets, and no-code creator tools. Mech.com was originally [founded by Trey Smith and Nik Rudenko](https://finyear.com/Shima-Capital-Leading-6M-Seed-Round-For-MECH-COM_a47725.html), while public coverage described Kyle Klemmer as joining the team in 2021 as COO. According to the same coverage, Klemmer’s blockchain network helped bring several investors and advisors into the project, including Justin Kan, **Matthew Morgan**, Josh Meier, Bradley Townsends, and HuK.

In August 2022, [additional coverage again presented Klemmer as COO](https://thegww.com/mech-com-tabs-kyle-klemmer-to-become-coo/?noamp=mobile) of Mech.com and credited him with helping lead the project’s $6 million fundraising round, which included names such as **Shima Capital**, **Yida Gao**, and **Jake Paul**. The project was marketed as a play-to-earn / Web3 gaming platform focused on casual gameplay, NFTs, and creator tools.

This is important because [Blockstreet later described Mech](https://x.com/BlockStreetXYZ/status/2057546529150517634) as the starting point that eventually evolved into **MIXIE**. That connection is also visible through current public web traces: a Mixie landing page states that “Mech is now Mixie,” while the [current Mech game page](https://mech.mixie.ai/) is hosted under the **mixie.ai** domain. This suggests that Mech was not an isolated project, but an early stage in the same broader network of people and products that later became connected to MIXIE and, ultimately, Blockstreet.

### Matt Morgan’s Confirmation as CEO of Mixie Studios & Mixie Media

In **late September 2024**, **World Liberty Financial (WLFI)** [announced](https://x.com/worldlibertyfi/status/1838686540823957587) that **Matt Morgan** had joined the project as an advisor. The announcement is important because WLFI identified Morgan publicly as the **CEO of Mixie Studios & Mixie Media**, confirming his leadership role in the Mixie ecosystem at that time. WLFI also described him as a game developer active on Telegram since 2016, with a track record in crypto and ventures that had reportedly scaled or exited for more than **$1 billion**.

<figure><img src="/files/ccq1YVx0qn73CLvKqIgQ" alt=""><figcaption></figcaption></figure>

This appointment also placed Morgan inside the broader **World Liberty Financial** network, a Trump-family-backed crypto project involving figures such as **Chase Herro** and **Zak Folkman** (friends from before).

For this timeline, the WLFI announcement matters for two reasons. First, it provides a public confirmation that Morgan was presented as the CEO of Mixie Studios & Mixie Media before Blockstreet appeared. Second, it shows that by September 2024, Morgan was already operating within a network of crypto entrepreneurs, advisors, and politically connected projects that would later become relevant when reviewing the connections between Mixie, Blockstreet, and related acquisitions.

### The Param Labs Acquisition of Mixie?

In **February 2025**, a [post by **Anthony Anderson**](https://x.com/kiracurrency/status/1890156426552832087), the founder and CEO of [**Param Labs**, announced](https://x.com/ParamLaboratory/status/1890149123246211168) that “**Param Labs has acquired Mixie Studios**.” However, during our review, we were unable to find any formal acquisition agreement, corporate filing, or official press release that independently confirms the transaction. The claim appears to have been promoted publicly through social media rather than supported by a verifiable acquisition document.

<figure><img src="/files/fGLPkqmZjSyNPSYR1sbJ" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/hlvR3tKNjAsW652ZBz1E" alt=""><figcaption></figcaption></figure>

Param Labs was not an unknown project at the time. It was the Web3 gaming company behind [**Kiraverse**](https://x.com/Kiraversegame) and the broader **PARAM** ecosystem, and in **May 2024** the company announced a **$7 million** seed/private funding round led by **Animoca Brands**, with participation from investors including **Delphi Ventures**, **Cypher Capital**, **P2 Ventures**, **Mechanism Capital**, **Merit Circle**, **TRGC Capital**, **Double Peak Group**, and **MH Ventures**. Public profiles describe Param Labs as a gaming and blockchain development studio focused on player-owned digital assets, multiplayer blockchain games, AAA design, and Web3 gaming infrastructure.

This matters because the claimed Param - Mixie acquisition attached the **Mixie** brand to Param Labs’ institutional credibility, investor roster, and existing Web3 gaming community. It helped create a stronger legitimacy narrative around Mixie before the token launch by associating it with a project backed by recognizable names such as **Animoca Brands**, **Delphi Ventures**, and **Mechanism Capital**.

CryptoRank also later listed **Mixie AI** as Param Labs’ only visible portfolio investment, which supports the existence of a public Param–Mixie association, but still does not prove the legal structure or terms of an acquisition.

### $Mixie token launch on Solana

Around three months after the claimed Param Labs–Mixie merger, the **$MIXIE token** was launched on **Solana** (CA: `3E8muKzsn84HUUmDWdjjd6geRjv5XUpMjdpbrqi3pump`). [Solscan shows](https://solscan.io/token/3E8muKzsn84HUUmDWdjjd6geRjv5XUpMjdpbrqi3pump) the token’s first mint on **May 21, 2025.**

The launch took place through the **Pump.fun** ecosystem, further supporting that this was not a traditional venture-backed token launch but a highly speculative Solana launchpad-style deployment.

<figure><img src="/files/J9qk3mlPugHReEWPak7j" alt=""><figcaption></figcaption></figure>

According to the [investigation by **@bond35865**](https://x.com/bond35865/status/2057829966226628696), roughly ten days later, on **May 31, 2025**, a community manager named **David 10X** reportedly posted that **Mixie and ParamLabs would no longer be working together**.&#x20;

> Following the announcement of our acquisition, it became clear that certain terms could not be aligned to move forward in a way that worked for both teams. After careful consideration, Mixie made the decision that it was in the best interest of both companies to pursue separate paths. We have nothing but respect for the ParamLabs team and community and wish them continued success.

We were unable to find a formal company announcement or legal filing confirming this separation, so this claim should be treated as based on community-sourced evidence rather than independently verified corporate documentation.

Interestingly, the $MIXIE token price started moving upward after the reported ParamLabs separation and appears to have topped around the same period as the next major announcement: **Zelgor’s acquisition of Mixie**.  Given the token’s listed max supply of **1 billion tokens**, that peak price implies a fully diluted valuation of approximately **$25 million.**

### Netcapital Portfolio Company Zelgor Acquires Mixie

On **June 9, 2025**, [**Netcapital Inc.**](https://netcapital.com/) **(Nasdaq: NCPL)** [announced](https://netcapital-inc.s3.amazonaws.com/press-release/130/39d91784-71b4-45f3-bf3d-b667a1a609c3.pdf) that its portfolio company [**Zelgor**](https://netcapital.com/companies/zelgor) had completed the acquisition of **Mixie**. In the press release, Mixie was described as a blockchain-native platform focused on **Web3 gaming, creator media, and decentralized community engagement**. Netcapital also stated that Mixie brought an ecosystem including an **AI-powered no-code game engine**, a **Web3-native media network with over 100 million monthly impressions**, and an accelerator model designed to support early-stage crypto projects.

<figure><img src="/files/dQmFpn32E0yZjFxgt2xQ" alt=""><figcaption><p><a href="https://x.com/netcapital/status/1932102193751990686">https://x.com/netcapital/status/1932102193751990686</a></p></figcaption></figure>

Notably, the announcement did **not** mention the **$MIXIE token** anywhere. The press release focused entirely on Mixie as a company/platform acquisition and did not describe any benefit, conversion, payment, or participation mechanism for $MIXIE token holders.

After the announcement, the $MIXIE token price began to decline, eventually falling toward an estimated market cap of around **$7 million** in the following days. This suggests that while the acquisition news created visibility for the Mixie brand, it did not appear to provide any direct value capture for token holders.

Three days later, on **June 12, 2025**, [Netcapital announced](https://x.com/netcapital/status/1933240054849180070) that **Matt Morgan** had joined its newly established **Crypto Advisory Board**. The [announcement described](https://www.nasdaq.com/press-release/matt-morgan-joins-netcapital-crypto-advisory-board-2025-06-12) Morgan as an advisor to multiple blockchain ventures and specifically mentioned his advisory role at **World Liberty Financial**. It also listed other Crypto Advisory Board members, including **Kyle Klemmer**, **Josh Meier**, **Eric Galen**, **Armando Soto**, and **Noah Holmes**.

<figure><img src="/files/WiNhkAAJXoGCqgiA2Krv" alt=""><figcaption></figcaption></figure>

This timing is important. If Morgan’s LinkedIn profile accurately shows that he had already been an advisor to Netcapital since **March 2025**, then his relationship with Netcapital may have started well before the public Mixie acquisition announcement, the $MIXIE token launch, and the end of the Param Labs collaboration narrative. Acquisitions are rarely arranged in only a few days, so the timeline raises questions about whether discussions between Mixie, Zelgor, Netcapital, and related parties were already underway before the token launch and the Param Labs Acquisition.

[Netcapital’s later SEC filing](https://www.sec.gov/Archives/edgar/data/1414767/000164117225014907/form8-k.htm) adds another relevant detail. The company disclosed that its board approved the formation of the Crypto and Game Advisory Boards on **June 6, 2025**, before the public June 12 announcement. The same filing states that advisory board members entered into advisory agreements and that Netcapital agreed to issue stock options to advisors under its equity incentive plan. The public filing confirms advisory-board option compensation generally, although it does not clearly break down the exact number of options granted to Matt Morgan individually.

<figure><img src="/files/RgoNTtvkYugyQ8E0TvtR" alt=""><figcaption></figcaption></figure>

Overall, the sequence creates a concerning timeline: **$MIXIE launched**, the **Param Labs connection reportedly ended**, the token price continued rising, **Zelgor/Netcapital announced the Mixie acquisition**, and shortly after, **Matt Morgan was publicly added to Netcapital’s Crypto Advisory Board with stock-option compensation disclosed for advisors**. Meanwhile, $MIXIE token holders were not mentioned in the acquisition announcement and appear to have received no direct benefit from the transaction.

### $Mixie migrates to BSC from Solana

Less than two months after the original **$MIXIE** token launch on Solana, the project announced another major change: the token would migrate from **Solana to BSC**. According to the Mixie website, the team took a snapshot of token holders on **June 30, 2025, at 11:30 PM EST**, after which holders were instructed to migrate through [**Claim.Mixie.AI**](claim.mixie.aihttps://claim.mixie.ai/), with the portal remaining active for six months. [CoinEx later confirmed](https://www.coinex.com/en/announcements/detail/38988582594324) the same migration timeline, stating that the snapshot took place at **03:30 UTC on July 1, 2025**, and that MIXIE was being migrated from Solana to BSC at a **1:1 ratio**.

> On June 30th 11:30pm EST We took a snapshot of Token Holders - We have now migrated from Solana to BSC - If you have tokens that need to be migrated, our claim portal will stay active for 6 months - visit at Claim.Mixie.AI

<figure><img src="/files/ijqfjx7EAvV7pYw6Xvpy" alt=""><figcaption></figcaption></figure>

The new [BSC contract](https://bscscan.com/token/0x44fd228e70e784ccc2b360da370ec1dacbdbede7#balances) was listed as **`0x44Fd228E70E784ccC2b360da370EC1DaCBdbEde7`**.

According to the migration portal explanation reviewed during this investigation, the stated reason for moving to BSC was to position Mixie closer to the **USD1 ecosystem**, claiming that BSC offered stronger stablecoin liquidity, programmable infrastructure, and broader reach.

> We’re moving to BSC to position Mixie at the core of USD1’s ecosystem. As USD1 scales globally, BSC offers the best foundation for real-world usage, stablecoin liquidity, programmable infrastructure, and massive reach.

However, the migration appears to have been poorly coordinated. [CoinEx stated](https://www.coinex.com/en/announcements/detail/38988582594324) that it did not receive prior notice from the project team, which prevented the exchange from supporting the migration in time. As a result, a significant number of old MIXIE-SOL tokens were deposited after the snapshot and quickly sold, causing a sharp price decline on CoinEx. The exchange later compensated affected users in CET and stated that eligible holders at the snapshot time would receive the new MIXIE-BSC tokens.

The situation became even more confusing only two weeks later. On **July 14, 2025**, the project team reportedly announced that the newly issued **MIXIE-BSC** token would be abandoned and that holders would instead receive the new **BLOCK** token at a **1:1 ratio** through an airdrop. CoinEx [responded](https://www.coinex.com/en/announcements/detail/39432261986580) on **July 18, 2025**, saying that it would not support the new migration or swap plan and would delist MIXIE. The exchange also stated that it contacted the project team to clarify the MIXIE-BSC and BLOCK migration arrangements but received no response or cooperation.

{% hint style="warning" %}
It is difficult to verify all of Mixie’s announcements on X because the **@MixieAI**, **@MixieMediaGroup**, and Matt Morgan’s **@MatthewMorgan23** profiles were suspended shortly afterward.
{% endhint %}

A separate [Telegram channel named **MixieUpdates**](https://t.me/s/MixieUpdates) also posted a “Token Migration Update,” stating that the team had originally planned an airdrop but decided against it because the process was too time-consuming and expensive. Instead, holders were directed to another migration portal, **token-migration-swap.com**, which is down at the time of writing. We couldn't find clear public evidence verifying how many MIXIE holders successfully completed the process.

<figure><img src="/files/A2fRIXAK41gNTyJE6SXF" alt=""><figcaption></figcaption></figure>

This makes it difficult to determine how many users actually received **BLOCK** tokens as compensation after the MIXIE-BSC transition. What can be verified is that within a very short period, holders were asked to move from **MIXIE-SOL** to **MIXIE-BSC**, and then from **MIXIE-BSC** to **BLOCK**. Two token migrations in roughly two weeks strongly suggest poor execution and weak coordination with exchanges. At minimum, the process created unnecessary friction and confusion for holders; at worst, it raises concerns that the migration structure may have reduced the number of users able to successfully claim their replacement tokens.&#x20;

### The $Block token and the Blockstreet project are born

On **July 14, 2025**, the **Blockstreet** project appeared publicly, and the **$BLOCK** token was created on Ethereum. From the beginning, the project positioned itself around the **USD1** narrative, presenting Blockstreet as infrastructure designed to support the adoption of the stablecoin.

The official Blockstreet documentation described the project as “the execution layer to accelerate adoption of USD1” and claimed that Blockstreet was the “official USD1-native launchpad.”

By **August 2025**, the USD1 narrative expanded further through public media appearances. In an interview with Decrypt, Blockstreet co-founder **Kyle Klemmer** argued that USD1 could become the world’s most widely adopted stablecoin by **2028**, even naming USDC as the first target. Decrypt also described Blockstreet’s stated mission as a **USD1-native launchpad** and said the firm had been tasked with helping integrate USD1 into crypto and traditional markets.

On **September 18–19, 2025**, Blockstreet promoted the launch of its **Vault** product. The Vault allowed users to lock **$BLOCK** tokens to generate **XP**, improve leaderboard rankings, and potentially qualify for future launch allocations.

A few days later, on [**September 23, 2025**, **Matthew Lee Morgan** joined **Tokenwell**](https://tokenwell.com/tokenwell-welcomes-high-profile-matthew-lee-morgan-to-advisory-team/) as a strategic advisor. [Tokenwell](https://tokenwell.com/)’s announcement described Morgan as **Co-Founder of Blockstreet** and a strategic advisor to both **ALT5 Sigma Corporation** and **World Liberty Financial**. This public profile is important because it confirms Morgan was an advisor to ALT5 Sigma already in September 2025 or even earlier.

The corporate structure behind Blockstreet remains an important part of the timeline. Later SEC filings confirmed that **Block Street Corp.** was a **Nevada corporation**, but we were not able to independently verify the exact **late-October 2025** incorporation date from an official Nevada registry source during this review.

In December 2025, Blockstreet began announcing a series of senior appointments. On **December 1, 2025**, the company announced **Kyle Chassé** as **Chief Operating Officer**, describing his role as leading global operations, ecosystem development, and platform scaling. Two days later, on **December 3, 2025**, Blockstreet announced **Derek Peterson** as **Chief Strategist**, with responsibility for strategic development, institutional partnerships, and market expansion.

On **December 10, 2025**, **Orthogonal Thinker** announced that it had aligned with Blockstreet as a **Strategic Sponsor**, while its founder and CEO **David Nikzad** was appointed **Head of Capital Markets** at Blockstreet. This later became especially relevant because the April 2026 SEC-filed transaction documents show **Orthogonal Thinker, Inc.** as one of the four owners of Block Street Corp. before the ALT5 Sigma transaction.

### ALT5 Sigma (AI Financial) acquires Block Street Corp.

On **April 20, 2026**, [**ALT5 Sigma Corporation**](https://www.aifi.co/) entered into a [Stock Exchange Agreement](https://contracts.justia.com/companies/appliance-recycling-centers-of-america-inc-7434/contract/1369035/) with the four owners of **Block Street Corp.**, a Nevada corporation. The deal was not structured as a simple cash acquisition. According to the [SEC filing](https://www.sec.gov/Archives/edgar/data/862861/000149315226018994/ex10-138.htm), ALT5 issued **12,670,257 shares** of common stock valued at **$12 million**, plus two sets of five-year pre-funded warrants valued at **$15 million** and **$16 million** if certain revenue and operating-income milestones are reached. This means the total potential value of the transaction was up to approximately **$43 million**.

{% hint style="info" %}
**ALT5 Sigma later rebranded as AI Financial Corporation.** The company [announced the planned rebrand](https://feeds.issuerdirect.com/news-release.html?newsid=7143798671844255\&symbol=AIFC) on April 22, 2026, and SEC filings state that the corporate name changed from ALT5 Sigma Corporation to AI Financial Corporation on April 28, 2026, with the Nasdaq ticker changing from ALTS to AIFC at market open on April 29, 2026.
{% endhint %}

ALT5 Sigma was not a traditional crypto-native company from the beginning. Its business history had shifted across several sectors, including biotech and fintech. An important detail is that ALT5 Sigma was already closely connected to the same network before the Block Street acquisition. In **August 2025**, ALT5 announced a [**$1.5 billion** registered direct offering and private placement connected](https://fortune.com/crypto/2025/08/11/world-liberty-financial-1-5-billion-alt5-sigma-alts-crypto-treasury-company-trump/) to **World Liberty Financial’s $WLFI treasury strategy**. As part of that transaction, **Zach Witkoff** [became chairman](https://x.com/ZachWitkoff/status/1954883938884673920) of ALT5, **Eric Trump** joined the board, **Zak Folkman** became a board observer, and **Matt Morgan** [became **Chief Investment Officer** of ALT5](#matt-morgans-confirmation-as-ceo-of-mixie-studios-and-mixie-media).

<figure><img src="/files/oWBc6YjLloXmUjJNrAsQ" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/BP9G43qPEanZIL2b4U7P" alt=""><figcaption></figcaption></figure>

This matters because the company where Morgan held a senior role later acquired a company where Morgan was also **CEO and 40% owner**. This creates clear conflict-of-interest optics: Morgan was connected to the buyer while also owning and leading the company being acquired.

<figure><img src="/files/KY7tNNKcDW2IO1wk0FXT" alt=""><figcaption></figcaption></figure>

On **April 30, 2026**, [AI Financial announced](https://x.com/AiFiCorp/status/2049868865358680547) that it had completed the acquisition of Block Street. The company said the acquisition was intended to expand its payment, trading, and settlement infrastructure into **tokenized capital formation**, **real-world asset tokenization**, and **token issuance** infrastructure. The announcement also stated that Block Street’s capabilities had not yet been commercially deployed and would still need to be evaluated for integration and regulatory considerations.

<figure><img src="/files/8hYZKwLy2l5eRLgYIrjn" alt=""><figcaption></figcaption></figure>

The key takeaway is that Block Street was sold to a Nasdaq-listed company less than one year after launch, despite limited visible evidence of fully developed products. At the same time, Matt Morgan held overlapping roles across **Blockstreet**, **ALT5 / AI Financial**, **World Liberty Financial**, and previous Mixie-related ventures. This does not prove wrongdoing by itself, but it raises serious questions about related-party interests, timing, valuation, and whether Block Street’s public product narrative matched the value assigned to it in the acquisition.

## $BLOCK token

[BLOCK](https://etherscan.io/token/0xcab84bc21f9092167fcfe0ea60f5ce053ab39a1e) Token CA: `0xCaB84bc21F9092167fCFe0ea60f5CE053ab39a1E`

In the following chapters, we examine the on-chain activity of the **BLOCK** token from its deployment onward to identify any suspicious patterns or noteworthy behavior.

Before continuing, it is important to establish the project's stated tokenomics. According to the official documentation, the total token supply is **1 billion BLOCK**. The documentation also includes a [token allocation (tokenomics) chart](https://docs.blockstreet.xyz/the-usdblock-token/markdown) that outlines how the supply is intended to be distributed across categories.

Throughout this investigation, we will compare these published allocations with the on-chain data to determine whether the stated tokenomics can be verified and how the allocated tokens were actually used.

<figure><img src="/files/iIlad1g4CcVQOlflMzMR" alt=""><figcaption></figcaption></figure>

To better understand the on-chain events discussed throughout this report, it is helpful to first examine the token's price history.

The **BLOCK** token reached its peak valuation of **nearly $130 million in market capitalization** on **August 8, 2025**, approximately **three weeks after launch**. Following this peak, the token entered a sustained downtrend. A second major price decline occurred on **September 1, 2025**, accelerating the overall loss in value.

Throughout the on-chain analysis, we will examine whether transactions involving wallets linked to the project team or related entities correlate with these significant price movements. At the time of writing, the token's market capitalization has fallen to **approximately $1 million**, which is below its estimated valuation at launch.

<figure><img src="/files/JfNyPtDpi9z3o7CAZLwZ" alt=""><figcaption></figcaption></figure>

## $BLOCK On-chain investigation

In the following chapters, we will examine the token's on-chain activity. We will begin by analyzing the token deployer and its funding history, then examine how the tokens were distributed. Finally, we will trace the movement of the tokens to identify any potential manipulation, coordinated activity, or other suspicious behavior.

### $BLOCK Token Deployer

The [$BLOCK token](https://etherscan.io/address/0xcab84bc21f9092167fcfe0ea60f5ce053ab39a1e) was deployed by wallet [**`0x99c420840708Ec5a82e99972119F7dB14a22E67b`**](https://etherscan.io/address/0x99c420840708ec5a82e99972119f7db14a22e67b) (Blockstreet: Token deployer) on **2025-07-14 at 15:34:47 UTC**.

The deployer wallet was funded with **0.2 ETH** from [**`0xA658E41091974CC562433E5072c3C16917371036`**](https://etherscan.io/address/0xa658e41091974cc562433e5072c3c16917371036) (Blockstreet: Deploy manager). This same funding wallet also received the initial token mint, indicating that it is the primary wallet behind the token deployment and initial distribution.

<figure><img src="/files/kjUBoHoj6Fx634U4ygPt" alt=""><figcaption><p>BLOCK token deployer flows</p></figcaption></figure>

The main [activities of the deployer wallet](https://etherscan.io/advanced-filter?fadd=0xa658e41091974cc562433e5072c3c16917371036\&tadd=0xa658e41091974cc562433e5072c3c16917371036) can be summarized as follows:

* [**2025-07-14 15:16:11**](https://etherscan.io/tx/0xbba123a017f17babc56f2618f8c33fa7525bdb30174951050b6984c3d00565bf) - The wallet is funded with **1 ETH** from [**0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8**](https://etherscan.io/address/0x0d20a3bc8a35f8b40aa15b1663cd7dc1b856bea8) (labeled **Blockstreet: Deployment Funder**).
* [**2025-07-14 15:34:47**](https://etherscan.io/tx/0x5cc72748f6709cdfd0caab6094dfda569d5d53210e7e21d13117eb24796c18df) - **1,000,000,000 BLOCK** tokens are minted to the deployer wallet.
* [**2025-07-14 15:41:35**](https://etherscan.io/tx/0x882428ac1d9591190efeb4f15b33dfe6730b4e53901ba016552d0496b66db856) - The wallet receives **400,952 USD1** from the **Bitget** exchange.
* [**2025-07-14 15:51:47**](https://etherscan.io/tx/0xeac6121c198965b62463c4788b469c7707841f5bab8ce2dfa1502dd42ba23977) - A **Uniswap V2** liquidity pool is created using **400,000 USD1** and **20,000,000 BLOCK** (2% of the total token supply).
* [**2025-07-14 16:08:23**](https://etherscan.io/tx/0x85367b7b3fc2b8d1d809ac2fd0092d44ff9b6b4c1c58c412cc4745936abe69f0) -  The first distribution batch of **22,000,000 BLOCK** (2.2% of the total supply) is transferred to **Disperse.app**, which distributes the tokens to **50 recipient wallets**.
* [**2025-07-14 16:52:35**](https://etherscan.io/tx/0x44bd8a9c1b08b56207edbcacbca49fe6ba561f6148f7c9fa3c0c0a459b2d7a03) - A second distribution batch of **957,843,294 BLOCK** (95.78% of the total supply) is transferred to **Disperse.app**, which subsequently distributes the tokens to **818 recipient wallets**.
* [**2025-07-28 17:06:23**](https://etherscan.io/tx/0xc59238d46da707f7bc8ab6a1176e90190a564b214d50bccd1416d5cc3327861a) - Approximately two weeks later, the liquidity provider (LP) tokens representing the Uniswap V2 liquidity position are transferred to the [**`0x7a8fbB21C7721d6c487Af1c883b0CB90a22d13D0`**](https://etherscan.io/address/0x7a8fbb21c7721d6c487af1c883b0cb90a22d13d0) (Blockstreet: Team Multisig 1) multisig wallet.

{% hint style="info" %}
**Understanding Uniswap Liquidity Tokens**: When liquidity is added to a Uniswap pool, the provider receives **liquidity provider (LP) tokens**, which represent their share of the pool. Whoever controls these LP tokens can redeem them at any time to withdraw the underlying assets from the pool. If the LP tokens are **not locked** or otherwise restricted, the owner remains free to remove the liquidity whenever they choose. In this case, the LP tokens were initially controlled by the project team and were **not locked**.
{% endhint %}

Based on the deployer’s activity, there are several interesting paths to investigate further. First, we should examine whether there is anything notable in the funding wallet’s history and subsequent usage. Second, the token distribution through Disperse.app may reveal important patterns, including coordinated wallet activity or other suspicious behavior.

Let’s continue by looking at the **Blockstreet: Deployment Funder** wallet.

### The Deployer Funding Sources

Let's continue by examining the **0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8** wallet (labeled **Blockstreet: Deployment Funder**).

This wallet has considerably more activity than is [shown here](https://etherscan.io/advanced-filter?fadd=0x0d20a3bc8a35f8b40aa15b1663cd7dc1b856bea8\&tadd=0x0d20a3bc8a35f8b40aa15b1663cd7dc1b856bea8\&ps=100); however, only the transactions relevant to this investigation are included. The complete transaction history can be viewed separately.

The key events are summarized below:

* [**2025-03-02 00:51:47**](https://etherscan.io/tx/0x6a0ae90044011063d68975dba945e3cfbce058c889376efe667594e880ac7898) - The wallet is funded with **0.007 ETH** and **967 USDC** from [**`0xd95DbD432852Cb01F0890bB79c146B1b09CEb046`**](https://etherscan.io/address/0xd95dbd432852cb01f0890bb79c146b1b09ceb046), whose ENS name is **k2ol.eth**. This wallet will be analyzed in detail later in the report.
* **2025-07-14:** On the same day the **BLOCK** token was deployed, the [wallet bridges **BSC-USD** from the BNB Smart Chain to Ethereum](https://etherscan.io/address/0x0d20a3bc8a35f8b40aa15b1663cd7dc1b856bea8#crosschaintx). The source and destination addresses belong to the same wallet on different blockchains, indicating that the same entity controls both addresses.

The timing of the bridge transaction is noteworthy, as it occurred immediately before the deployment and funding of the BLOCK token, linking the activity across the BNB Smart Chain and Ethereum.

<figure><img src="/files/K8n2hCCxVl9IrIYFWgwr" alt=""><figcaption><p>Bridge transfers for 0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8 (Blockstreet: Deployment Funder)</p></figcaption></figure>

Analyzing the [**`0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8`**](https://bscscan.com/advanced-filter?fadd=0x0d20a3bc8a35f8b40aa15b1663cd7dc1b856bea8\&tadd=0x0d20a3bc8a35f8b40aa15b1663cd7dc1b856bea8) wallet on BNB Smart Chain revealed an interesting finding. We identified a direct on-chain connection between the **Mixie token deployer on BNB Smart Chain** and the **0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8** wallet.

Let’s examine this connection in more detail. The flow below illustrates the connection, which is explained step by step in the following paragraph.

<figure><img src="/files/e4cQhy5aaOHfehCTFFk1" alt=""><figcaption><p>The flow connecting Mixie on BSC and BLOCK deployment.</p></figcaption></figure>

The main flow can be summarized as follows:

* [**2025-07-03 16:09:50**](https://bscscan.com/tx/0x94b73e72881a74babce6be96d999581353199a20c2317653cc33dd49b908b8a9) - The wallet **0x5e60B659509ea088aC6909429f4035632bf4F45E** (labeled **Mixie: Distributor** in the flowchart) mints **1,000,000,000 MIXIE** tokens on the BNB Smart Chain.
* The newly minted MIXIE tokens are subsequently distributed to a large number of wallets. During our analysis, we identified the same distribution pattern observed for the **BLOCK** token: the tokens were distributed through **Disperse.app**.
* One distribution cluster stood out in particular. On [**2025-07-03 16:53:58**](https://bscscan.com/tx/0xcff5a42dcfc03ddaea761f651be3ed0a42653dcad8719bc43a66a2664b9f88f5), **50 wallets** received MIXIE tokens via **Disperse.app**, mirroring the initial 50-wallet distribution used for the BLOCK token. The similarity in the distribution method and wallet clustering suggests a common operational pattern between the two token launches and warrants closer examination.
* Each wallet appears to have been newly funded, received MIXIE tokens through Disperse.app, and showed no other on-chain activity. Their primary purpose appears to have been trading and, ultimately, selling the MIXIE tokens. A few representative examples include:
  * [0x88EE3C88Ff8a2B13CaE73912466a542d9fd0bEB5](https://bscscan.com/address/0x88ee3c88ff8a2b13cae73912466a542d9fd0beb5#tokentxns)
  * [0x72bEb78B62E6D54AF144AE710838FD4106210d9c](https://bscscan.com/address/0x72beb78b62e6d54af144ae710838fd4106210d9c#tokentxns)
  * [0x1B0f05a3FFCBCaA51152403cDF730C89bF53c4A1](https://bscscan.com/address/0x1b0f05a3ffcbcaa51152403cdf730c89bf53c4a1#tokentxns)
* The consistency of this behavior across multiple wallets suggests a coordinated distribution strategy. A portion of the proceeds from the token sales was subsequently consolidated into the wallet [**0xa5FdF12E2E4716abBbc6f0e292BC8833fbd7B167**](https://bscscan.com/address/0xa5fdf12e2e4716abbbc6f0e292bc8833fbd7b167#tokentxns).

<figure><img src="/files/9q8NLGNoys7xGbD22DJT" alt=""><figcaption></figcaption></figure>

* On [**2025-07-14 14:45:40**](https://bscscan.com/tx/0xe9816a3e9cb9cc1dec31cf4108cd8db04df2e0a2556a107b05aabdfc0e01cc10) **-** approximately **one hour before the BLOCK token was deployed -** the accumulated funds, totaling **52,061 USD1**, were transferred to **0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8**, the wallet previously identified as the **Blockstreet: Deployment Funder** on BNB Smart Chain.
* The funds were then bridged from BNB Smart Chain to Ethereum [via the **Mayan Finance** bridge](https://explorer.mayan.finance/tx/SWIFT_0xbed8510fa1a19972b87339ed57c4ab04effa4b99d121b96ee23e0cd176fb4ffb). The destination address on Ethereum was the same wallet, indicating that control of the funds remained with the same entity across both blockchains.
* This transaction establishes a direct on-chain link between the proceeds generated from the MIXIE token distribution and the wallet that later funded the deployment of the BLOCK token.
* Just a few minutes later, on [2025-07-14 15:06:23](https://etherscan.io/tx/0xeb6a7628adbf2d79277cc637dee774f473c32af920918f533b622925cb91ff93), 50,000 USD1 was transferred to [0xD65b1efe12cD8ee40da53bA581EbC68997e9c1fE](https://etherscan.io/address/0xd65b1efe12cd8ee40da53ba581ebc68997e9c1fe#tokentxns). This wallet plays a significant role in the on-chain flow and will be examined in detail in the next chapter.

The on-chain evidence establishes a direct connection between the entity that deployed the **MIXIE** token on BNB Smart Chain and the entity that deployed the **BLOCK** token on Ethereum. The flow of funds can be traced from wallets involved in the MIXIE token distribution, through the **Blockstreet: Deployment Funder** wallet, and ultimately to the deployment of the BLOCK token.

Our analysis uncovered substantially more activity on BNB Smart Chain. However, as the focus of this report is the **BLOCK** token, a detailed analysis of the MIXIE ecosystem is outside its scope and would warrant a separate report.

One particularly noteworthy finding is the timing of these transactions. Despite the announced sale of Mixie to Netcapital on **June 9**, the on-chain activity shows that wallets associated with the MIXIE token remained active and were used to fund the deployment of the BLOCK token more than a month later. This provides strong on-chain evidence that the same entity retained control over the wallets involved in the MIXIE token operations and subsequently used them in connection with the BLOCK token deployment.

### Analyzing the first smaller Disperse cluster

{% hint style="info" %}
**Disperse.app** is a tool that allows a user to send tokens or cryptocurrency to hundreds of wallets in a single transaction. It is commonly used for airdrops, token distributions, and payroll payments because it is faster and cheaper than sending tokens one wallet at a time.
{% endhint %}

Earlier, we observed that the **Deployment Funder** wallet (**0x0d20A3Bc8A35f8B40aA15b1663Cd7dC1b856BEa8**) transferred **50,000 USD1** and **10 ETH** to [**0xD65b1efe12cD8ee40da53bA581EbC68997e9c1fE**](https://etherscan.io/tokentxns?a=0xd65b1efe12cd8ee40da53ba581ebc68997e9c1fe\&p=1) (labeled **Blockstreet: Trading Orchestrator**) on **2025-07-14**.

Analysis of this wallet shows that it subsequently split these funds among a large number of newly funded wallets.

A closer examination reveals that these were the same wallets that received **BLOCK** tokens from the smaller **Disperse.app** distribution. In total, **50 wallets** each received **440,000 BLOCK** tokens. These wallets then traded the token between **July 15 and July 23, 2025**.

<figure><img src="/files/YBSxIHwBd8KqQ6jjXZel" alt=""><figcaption></figcaption></figure>

Based on the on-chain evidence, the entity behind the **BLOCK** deployment appears to have established a coordinated cluster of **more than 70 trading wallets**. These wallets received a combined **2.2% of the total BLOCK supply** through **Disperse.app** and were subsequently used to actively trade the token.

This raised several important questions: How were these wallets operated? How much profit did they generate? And where were those profits ultimately transferred?

To answer these questions, we aggregated and analyzed all swap transactions executed by the wallets in this cluster. The results:

* Our analysis identified **68 wallets** that actively traded the BLOCK token, executing a total of **7,326 swap transactions**. Several additional intermediary wallets were used solely to transfer funds to newly created trading wallets and did not trade themselves.
* Between **July 15 and July 23, 2025**, these trading wallets generated approximately **1,062,427 USD1** in realized profits from trading the BLOCK token.
* As shown in the chart below, the wallets traded almost continuously throughout this period, typically extracting $10,000–20,000 in profits every 4 hours. During this phase, the sustained selling pressure appears to have been absorbed by strong market demand and the initial hype surrounding the project, allowing the token price to continue rising.
* The largest profit extraction occurred around the local price peak on July 23, 2025, when more than $100,000 was realized within a four-hour period.
* In the chart, the **upper panel** shows the BLOCK token price (yellow line) together with the buy and sell volume, while the **lower panel** displays the realized profits extracted by the identified wallet cluster during each four-hour interval.

<figure><img src="/files/JSjiq3KAau3VLQVLteGf" alt=""><figcaption></figcaption></figure>

For readers who wish to independently verify the analysis, a detailed breakdown of the identified wallets and their transactions is available in the expandable section below.

<details>

<summary><strong>All wallets overview</strong></summary>

<table><thead><tr><th width="455">Wallet</th><th width="119">Total USD profits</th><th>Total Swaps</th></tr></thead><tbody><tr><td>0xf9c032d8cb2a413c08a5d1f95d5a8c30f71366ed</td><td>43,360.43</td><td>76</td></tr><tr><td>0xfcf3feba9c8ea9909f117ef735725a923fc6d54e</td><td>40,193.10</td><td>93</td></tr><tr><td>0x8c93d8aa70bc61e6261129a68153aad9c03e9cd3</td><td>36,902.06</td><td>78</td></tr><tr><td>0x3ba45c7d8cbacc626cdca0d6a24c65396f8b1116</td><td>34,380.17</td><td>91</td></tr><tr><td>0x23229a527832a17fd353544545fc080cd8022019</td><td>31,566.31</td><td>72</td></tr><tr><td>0x7823d8ec2aed5ba2af6dcd7010b0f5f63eb24624</td><td>30,074.37</td><td>81</td></tr><tr><td>0xe7954c57b7f53e785eddc632e00e886bdd0df7b3</td><td>29,258.18</td><td>119</td></tr><tr><td>0x69ef230679754cc35f253291875a7ddbb069b7fb</td><td>28,598.29</td><td>89</td></tr><tr><td>0x83f6c7b22b4a5f6e5d6adc70a33911eb6662f5d1</td><td>27,216.70</td><td>49</td></tr><tr><td>0x156c25b1b040eca03ba39b03eeba5ef4e0ef6363</td><td>27,133.62</td><td>71</td></tr><tr><td>0x9afdc07da8f426b1af155e1f6ddad21c27984d22</td><td>25,041.71</td><td>136</td></tr><tr><td>0x956d48e20ae0baf1755c2b0c57f114c30dfd88de</td><td>24,862.43</td><td>147</td></tr><tr><td>0xfffabdb87e6ce083b5f98d5a0a9842416f7a0493</td><td>24,677.14</td><td>125</td></tr><tr><td>0x5ed6b220c6ba8fc719ddb32f4df05787c7af2b4f</td><td>24,257.54</td><td>85</td></tr><tr><td>0xab3547e471f8a75eeac6b6c01200a091f5c88280</td><td>23,984.89</td><td>61</td></tr><tr><td>0x0c9094b3f1cd3146a3464de85166a424037b9984</td><td>22,874.95</td><td>80</td></tr><tr><td>0x832586d9033fe0baf2456131b365d7b56dd6a79a</td><td>22,770.48</td><td>62</td></tr><tr><td>0x2ef35c99dafc543ae6ef908bd14fc623951f7822</td><td>21,547.61</td><td>154</td></tr><tr><td>0xd6329f307fd3882269cf94f4a563c5af1cf60285</td><td>21,250.10</td><td>155</td></tr><tr><td>0x4590913daf147b36451f46b1ddc1d47e12f863e4</td><td>20,993.61</td><td>85</td></tr><tr><td>0xd80276320559d2054efa6a39d849f99d09444d00</td><td>20,866.04</td><td>133</td></tr><tr><td>0x50784ab8f8422ab246fcf7c44676bfff44debd75</td><td>19,378.76</td><td>138</td></tr><tr><td>0xf7fa5372cfab3d54eacaf8c45cb6bbc80159155c</td><td>19,345.38</td><td>102</td></tr><tr><td>0x8d11489ff4c42996425cbd21b9e53a4396e0f554</td><td>19,108.37</td><td>131</td></tr><tr><td>0x8677b8b812df9a369fb3e4a0e0efca0e531dc626</td><td>18,466.82</td><td>141</td></tr><tr><td>0xb527589c1616287400bc1282776c694ffdcee12e</td><td>18,368.23</td><td>133</td></tr><tr><td>0xfc4bf4efac246e0bc53994ae1ef893d472e3e064</td><td>18,322.56</td><td>83</td></tr><tr><td>0x79641e3284f04813d87a1034e7d1dd8bad885901</td><td>18,278.29</td><td>135</td></tr><tr><td>0x427f0b5d7563a89533278d8ea19f129c5deb35ef</td><td>18,067.49</td><td>88</td></tr><tr><td>0xf8a4c0195e12b7a5cc227bfb85574e07fae8a9fd</td><td>17,911.25</td><td>135</td></tr><tr><td>0x04d594bfdf4510df9439c668d028f1301ef9fc5e</td><td>16,423.98</td><td>162</td></tr><tr><td>0x28a6f41e812d99ab5f4edc7ece6b9d4ba21c4755</td><td>16,278.07</td><td>131</td></tr><tr><td>0x83ef5c4426fa00101b2805a394886e20a676a352</td><td>16,206.26</td><td>137</td></tr><tr><td>0x2cb2f80bb27231edbbac5bee09ac23b5c5f7cec0</td><td>16,101.02</td><td>89</td></tr><tr><td>0xfec37c55994b0e94d6fa78e3db3ad75e85f5a6bd</td><td>15,678.18</td><td>138</td></tr><tr><td>0xae156a7a81831fcd75944599f7ad0c67cc73556e</td><td>14,962.29</td><td>68</td></tr><tr><td>0x8a072e40789d9ee3b29722e6f02e97e41a0048f3</td><td>14,608.71</td><td>155</td></tr><tr><td>0xd144e30f4b8419da97c04cd041a0333537b7e8de</td><td>13,653.99</td><td>119</td></tr><tr><td>0x771adfd9c01d407aa43c42d6d0d69d04280a8571</td><td>12,628.31</td><td>127</td></tr><tr><td>0x5ad839e317d0c7fa46b66d6d80989ab90046efc4</td><td>12,555.35</td><td>109</td></tr><tr><td>0x96f6ddfb483a097dc0bf9f6114feb7d011c72fd8</td><td>12,057.02</td><td>85</td></tr><tr><td>0x3f7f3491dd0ab70f61a33d05f42bbd286ebd4e05</td><td>11,987.95</td><td>147</td></tr><tr><td>0x89502941d092f3cd53496902b18091e9ba221a5f</td><td>11,938.62</td><td>155</td></tr><tr><td>0x8df5d91a39d1c1c3774fe73ddc39d254a9b1e25d</td><td>11,396.05</td><td>145</td></tr><tr><td>0xe4809f7c96704404f0d6d2b98304c954b94c9d00</td><td>11,195.73</td><td>83</td></tr><tr><td>0xda3091c723721c908d35e73f3ca3dfe87fbea4a0</td><td>11,098.83</td><td>157</td></tr><tr><td>0x108e4222d7007ac5985c8f338d9c618bd89f3b6e</td><td>10,871.55</td><td>141</td></tr><tr><td>0x31cd1ab796ed23a2a0338240f62281a9724a4381</td><td>9,848.85</td><td>154</td></tr><tr><td>0x18764d55ba7277bb163b14fede703a1b0f405b3c</td><td>9,352.71</td><td>68</td></tr><tr><td>0x38508c8a0ceda36146331d3887f8f25ba0ad25e0</td><td>9,298.96</td><td>72</td></tr><tr><td>0x2111a4cefa009e775e7c9ccb705f5393799a12f9</td><td>8,755.08</td><td>152</td></tr><tr><td>0x7f658e3d41f0cbcf341396f9727c89c1f0b6ace5</td><td>7,954.40</td><td>90</td></tr><tr><td>0xec6787bc00c31283e381105ba34e4fa0b1d916e5</td><td>7,314.98</td><td>85</td></tr><tr><td>0x4a0ac91f369c16103ac72326359e6449158dc710</td><td>6,697.99</td><td>138</td></tr><tr><td>0x02eb21e23fd23ef8c8a1649d4db57ab9bf0f7344</td><td>6,672.79</td><td>83</td></tr><tr><td>0xf314b9a7c3d178d27ff1113b39d7f7ed5c8e19da</td><td>6,180.38</td><td>83</td></tr><tr><td>0x6819906f1aade329348ae8ff807afee53df51b28</td><td>5,658.45</td><td>71</td></tr><tr><td>0xcf09ac24b76a6c0dcf4b2fef515bfa866a6fb6aa</td><td>5,493.31</td><td>133</td></tr><tr><td>0x8098c23542ad339144c6917723caec895280fe35</td><td>5,348.68</td><td>88</td></tr><tr><td>0x124a944991561b9415dc69020373ea8ddcd35a0c</td><td>5,083.16</td><td>158</td></tr><tr><td>0xe67608774aed0380a9d9e0c0349e04a4afc6e20e</td><td>2,990.88</td><td>67</td></tr><tr><td>0xd0f7de693761ccbc004136f8e31995ace0fdd32f</td><td>2,090.75</td><td>68</td></tr><tr><td>0x74ee511a30f20e09b4391d709e06eb03608ceeb1</td><td>1,903.84</td><td>79</td></tr><tr><td>0x646efa5670ff47a0d5ce4a3d1b614a3d9f7be7a5</td><td>1,148.18</td><td>139</td></tr><tr><td>0x2f6ee59ae7f05e6d12735641756f2db28bdfd173</td><td>-1,183.22</td><td>61</td></tr><tr><td>0x890c8b9da95ec4223a7d0c906d76d41c3e89709a</td><td>-2,533.05</td><td>74</td></tr><tr><td>0x252652b232b839af46b53506edd89a4096b57108</td><td>-3,499.37</td><td>87</td></tr><tr><td>0x216c0f9b593eb64140fd66b39f0715c929deacc5</td><td>-10,849.30</td><td>100</td></tr></tbody></table>

</details>

Our next objective was to determine where the trading profits ultimately ended up. The analysis showed that the trading wallets consolidated their proceeds into two primary profit collection wallets:

* 940,138 USD1 → [0x39b4acb18fc78724d8421f9552b564f6b1ce7fa9](https://etherscan.io/address/0x39b4acb18fc78724d8421f9552b564f6b1ce7fa9#tokentxns) (labeled Blockstreet: Profit Collector 1)
* 151,000 USD1 → [0x9f437C97207783D1eeB0dCB640A5A0f94c67313C](https://etherscan.io/address/0x9f437c97207783d1eeb0dcb640a5a0f94c67313c#tokentxns) (labeled Blockstreet: Profit Collector 2)

Between **July 18 and July 24, 2025**, these funds were transferred through several intermediary wallets before reaching their final destinations. The complete flow of funds is illustrated in the diagram below:

<figure><img src="/files/b0xIgeW4Rvi02TtppyXb" alt=""><figcaption></figcaption></figure>

The funds collected by **Blockstreet: Profit Collector 1** followed the transaction path below:

* [**2025-07-23 12:48:11**](https://etherscan.io/tx/0x84a67f37204460c9362abb295c7e2e14da422b7d79c89c34986f0bccb26fadaa) – **940,138 USD1** was transferred to [**0xD9c962405E74c601973DF38175A763a1D0859B81**](https://etherscan.io/address/0xd9c962405e74c601973df38175a763a1d0859b81#tokentxns).
* [**2025-07-24 17:14:11**](https://etherscan.io/tx/0x248262e15efa414445570c71c5cca4cfefbd096b77db390866573da598edd413) – **903,741 USD1** was subsequently transferred to [**0xdA96CDce297172d0C958B4A6Ec1504826a2F8ef5**](https://etherscan.io/advanced-filter?hdst=true\&fadd=0xda96cdce297172d0c958b4a6ec1504826a2f8ef5\&tadd=0xda96cdce297172d0c958b4a6ec1504826a2f8ef5\&txntype=2\&ps=100\&p=2).

The wallet **0xdA96CDce297172d0C958B4A6Ec1504826a2F8ef5** then swapped the **USD1** for **USDC** before distributing the funds to three identified **Binance deposit wallets**. At this point, the funds entered Binance's custody, and further on-chain tracing was no longer possible.

The transfers to Binance were as follows:

* [**2025-07-24 19:37:11**](https://etherscan.io/tx/0xea321d33d7a354179915d007931d115e433c6875122506eb475d95ba21ad0c30) – **201,590 USDC** transferred to **0x999ef9Ec4800733a42271082CB509D17d67Dfd3d** (Binance deposit address).
* [**2025-07-24 19:54:47**](https://etherscan.io/tx/0x708ee260c032943e2a20d16aa2338a06598378e466719c43a102308eb4cc372a) – **500,000 USDC** transferred to **0x2f765942216700a5830f47292d6f3a0E8bF8d4B1** (Binance deposit address).
* [**2025-07-24 19:55:47**](https://etherscan.io/tx/0x9723e564a26cbd85eb1c5b7443d872b91ff5867e9f9657e4cc3e2126610dd2e2) – **200,000 USDC** transferred to **0x5D4912361aB252846F1D7fdc9Db3502DB4Aa1272** (Binance deposit address).

These transactions indicate that the majority of the profits generated by the identified trading wallet cluster were ultimately consolidated, converted to USDC, and deposited into Binance.

The **151,000 USD1** collected by **Blockstreet: Profit Collector 2** followed a different path. The funds were transferred to **0x0256A81ab5071cE1e8AC7A6fcD0c183a201A6668**, where they were swapped into other assets and subsequently distributed across multiple wallets in smaller amounts, making the subsequent fund flows more fragmented and difficult to trace.

To conclude this chapter, our on-chain analysis shows that wallets linked to the entity behind the **BLOCK** token deployment operated a coordinated network of trading wallets that generated **more than $1 million** in realized trading profits within just **eight days**. The majority of these proceeds were ultimately consolidated and transferred to **Binance** deposit addresses, while a smaller portion was routed through additional intermediary wallets.

The complete flow of funds is illustrated in the diagram below.

<figure><img src="/files/jpzwGshtVt0p94VavZLj" alt=""><figcaption></figcaption></figure>

### Analyzing the Distribution of the Larger Disperse.app Cluster

Next, we analyzed the token distribution from the larger **Disperse.app** cluster. As discussed earlier, the token deployer transferred **957,843,294 BLOCK,** representing **95.78% of the total token supply,** to **Disperse.app**, which subsequently distributed the tokens to **818 recipient wallets**.

Given the large number of recipient wallets, we began our investigation by focusing on the largest allocations. The table below shows the **10 wallets that received the highest number of BLOCK tokens** through the Disperse.app distribution.

<table data-search="false"><thead><tr><th width="482">Wallet</th><th>Amount (BLOCK)</th></tr></thead><tbody><tr><td>0xe8c3fb4b321ccd72514b24a1532245e8e4cc1e78</td><td>200,000,000</td></tr><tr><td>0x5fdc9e485d188619092592a38cc9245b6fe8ed1f</td><td>100,000,000</td></tr><tr><td>0x9bf93354831d8cf76310271290d5b46232758da1</td><td>100,000,000</td></tr><tr><td>0x58fb7fbf560aaf83dce37a1d794efbd8616392c6</td><td>90,000,000</td></tr><tr><td>0x159cea47ca38db96a544a1f915b38b5ff3129edb</td><td>80,000,000</td></tr><tr><td>0x5e60b659509ea088ac6909429f4035632bf4f45e</td><td>66,945,042</td></tr><tr><td>0x8b18d0d2430b0a0bcd476533753a079cab624c69</td><td>38,000,000</td></tr><tr><td>0xc9a931daade51da94dd9a41d20e30b94dd55b8e2</td><td>16,178,814</td></tr><tr><td>0xe932d12689ca8d3c75a81021118fad4f254aacc8</td><td>8,840,259</td></tr></tbody></table>

The four largest recipient wallets each received an allocation that exactly matched the percentages published in the project's official tokenomics. Based on these allocations, we assigned labels corresponding to their stated purpose:

* The first of these wallets, [`0xe8c3fb4b321ccd72514b24a1532245e8e4cc1e78`](https://etherscan.io/address/0xe8c3fb4b321ccd72514b24a1532245e8e4cc1e78) (labeled Blockstreet: Ecosystem Rewards), received 20% of the total BLOCK supply. The tokens were subsequently transferred through an intermediary wallet before reaching [`0xD9EcDb415841761043520A8c7F043437127718Ef`](https://etherscan.io/address/0xd9ecdb415841761043520a8c7f043437127718ef#tokentxns), the Blockstreet company multisig wallet.

  At the time of writing, this multisig wallet still holds 130,000,000 BLOCK tokens. The allocated tokens remained untouched until March 20, 2026, when 70,000,000 BLOCK was distributed to six wallets and subsequently split among a larger number of sub-wallets. Because these funds remained inactive throughout the period covered by the main investigation, particularly during the token's most active trading period in the summer of 2025, we have not performed a detailed analysis of these later transfers.

<figure><img src="/files/Eorpu8ulwB6i1pB2ilyX" alt=""><figcaption></figcaption></figure>

* Second, the address [`0x5fdc9e485d188619092592a38cc9245b6fe8ed1f`](https://etherscan.io/address/0x5fdc9e485d188619092592a38cc9245b6fe8ed1f#tokentxns), labeled **Blockstreet: Launchpad**, also moved **10% of the token supply** through a proxy wallet to [`0x70201904dfe6e1686a2b1ca4e93a180614b39d1d`](https://etherscan.io/address/0x70201904dfe6e1686a2b1ca4e93a180614b39d1d). The funds remained inactive until **September 6, 2025**, when the entire token balance was moved to new wallets. From these wallets, most of the BLOCK tokens were later sent to centralized exchanges. Some tokens are still sitting in newly created wallets, while others have been swapped. We identified at least two **MEXC deposit wallets** that received a significant amount of BLOCK tokens, not only from this flow but also from other wallets. We will examine these MEXC-linked deposits in more detail in the next chapter.

<figure><img src="/files/7eQIPOto9SQWsjEG4YHe" alt=""><figcaption></figcaption></figure>

* The third wallet, [`0x9bf93354831d8cf76310271290d5b46232758da1`](https://etherscan.io/address/0x9bf93354831d8cf76310271290d5b46232758da1) (labeled Blockstreet: Partnerships), received 10% of the total BLOCK supply, matching the allocation specified in the project's tokenomics. From this wallet, the BLOCK tokens were distributed across numerous recipient wallets. The majority of the allocation had been transferred out by the end of August 2025. A significant portion of the tokens ultimately reached centralized exchanges, including MEXC deposit addresses mentioned before.
* The fourth-largest recipient was [`0x58fb7fbf560aaf83dce37a1d794efbd8616392c6`](https://etherscan.io/address/0x58fb7fbf560aaf83dce37a1d794efbd8616392c6) (labeled Blockstreet: Treasury & Marketing), which received 90,000,000 BLOCK, representing 9% of the total supply. Most of these tokens were transferred out of the wallet before the end of August 2025 and distributed across numerous intermediary wallets. Tracing these flows reveals repeated transfers to the same MEXC deposit addresses identified earlier in this investigation. The movement of funds through multiple intermediary wallets before ultimately reaching the same exchange deposit addresses forms a recurring on-chain pattern observed throughout this analysis and merits further scrutiny.

<figure><img src="/files/Va85vilgfaMaHWWjZFo8" alt=""><figcaption><p>The flow of top 4 recievers.</p></figcaption></figure>

* The distribution becomes even more noteworthy when examining the fifth-largest recipient, [`0x159Cea47ca38db96a544A1f915B38B5FF3129eDb`](https://etherscan.io/address/0x159cea47ca38db96a544a1f915b38b5ff3129edb#tokentxns), which received 8% of the total BLOCK supply. A portion of the tokens from this wallet was ultimately transferred to the same MEXC deposit addresses identified elsewhere in this investigation. The remaining tokens were distributed to a cluster of 10 wallets that exhibited highly similar trading behavior and appear to have operated as a coordinated trading bot network. We examine this wallet cluster and its trading activity in detail in a later chapter of this report.

Many of the other wallets that received tokens through the larger **Disperse.app** distribution followed a similar pattern. The allocated tokens were first divided among several intermediary wallets before being distributed further to newly created wallets or transferred to centralized exchanges.

At this stage, we have gathered sufficient evidence to narrow the investigation to two key areas. The first is the recurring network of **MEXC deposit addresses**, which appear throughout the token flows. The second is the coordinated trading wallet clusters, whose activity may have influenced the BLOCK token's market price.

The following chapters examine both of these areas in greater detail to determine their role in the token's trading activity and overall market behavior.

### Analyzing the MEXC Deposit Addresses

Our analysis of the wallets depositing **BLOCK** tokens to **MEXC** revealed that all of the deposited tokens originated from the supply initially distributed through **Disperse.app**.

One particularly noteworthy connection is that [**0xd95DbD432852Cb01F0890bB79c146B1b09CEb046**](https://etherscan.io/address/0xd95dbd432852cb01f0890bb79c146b1b09ceb046#tokentxns)**,** the wallet that originally funded the **Deployment Funder** and played a key role in the project's initial operations, also deposited BLOCK tokens to these 6 suspicious MEXC deposit wallets. The tokens were routed through the intermediary wallet [**0x601D8c32aeafe8bA48f2181CD63812eF074DaEC7**](https://etherscan.io/address/0x601d8c32aeafe8ba48f2181cd63812ef074daec7#tokentxns) before reaching the exchange deposit addresses.

The six MEXC deposit addresses directly linked to the initial team distribution of BLOCK tokens identified throughout this investigation are listed below:

* [**0x8fcb8d5784ee287f47b32527a021dd942333e72f**](https://etherscan.io/tokentxns?a=0x8fcb8d5784ee287f47b32527a021dd942333e72f\&p=3)
* [**0xf835d22fd0c7e5069b19dd5efedd6697151c99a7**](https://etherscan.io/tokentxns?a=0xf835d22fd0c7e5069b19dd5efedd6697151c99a7\&p=1)
* [**0x18884e2b45c40f1362cb1b1b8fa0fc9cf0afad24**](https://etherscan.io/address/0x18884e2b45c40f1362cb1b1b8fa0fc9cf0afad24#tokentxns)
* [**0xa6e1050da8ec57f916db7fefee2e5c5867c3a4e6**](https://etherscan.io/address/0xa6e1050da8ec57f916db7fefee2e5c5867c3a4e6#tokentxns)
* [**0xfeb71d0e6dc041fb7a6b4d44c4554ec1d40f8286**](https://etherscan.io/address/0xfeb71d0e6dc041fb7a6b4d44c4554ec1d40f8286)
* [**0x11bb858f7a893413bef3f06c566ccff2c9ba9f8b**](https://etherscan.io/address/0x11bb858f7a893413bef3f06c566ccff2c9ba9f8b)

The diagram below illustrates the simplified flow of **BLOCK** tokens into these six MEXC deposit addresses.

<figure><img src="/files/AlLK5roLpTXmwlqEFysv" alt=""><figcaption></figcaption></figure>

In total, **216,417,476 BLOCK** tokens, approximately **21.6% of the total token supply,** were transferred to MEXC through these six deposit addresses. This makes them one of the largest on-chain destinations for BLOCK tokens identified during the investigation.

We also estimated the **USD value** of the transferred BLOCK tokens by using the market price at the time of each transfer. Assuming there had been sufficient market liquidity to absorb all of the sales, the total value of these token transfers would have been **approximately $29 million**.

<details>

<summary><strong>Wallets Consolidating Funds to Six MEXC Deposit Addresses</strong></summary>

<table><thead><tr><th width="445">Wallet</th><th width="146">Amount</th><th>Transfers</th></tr></thead><tbody><tr><td>0x601d8c32aeafe8ba48f2181cd63812ef074daec7</td><td>11,415,390.00</td><td>4</td></tr><tr><td>0x35c10b618b31431aaed8de0e295059e04f586136</td><td>10,383,211.70</td><td>2</td></tr><tr><td>0x53afc77a5c5bdb93fa5abb606516d6f9b80d3e63</td><td>10,000,000.00</td><td>3</td></tr><tr><td>0x784d7fa3b9ca46821c0f9f238d13d722d4991ad2</td><td>10,000,000.00</td><td>3</td></tr><tr><td>0x71dcbcaa005f80dbff67ffdd94b74a735320035e</td><td>10,000,000.00</td><td>3</td></tr><tr><td>0x120051a72966950b8ce12eb5496b5d1eeec1541b</td><td>9,999,671.92</td><td>1</td></tr><tr><td>0xd5a88eb57cf3f7857c8bdee14f4e34561e2fab1d</td><td>9,100,000.00</td><td>2</td></tr><tr><td>0x5836b498f53e93401e4614333bbbbb0418d79a87</td><td>8,900,000.00</td><td>2</td></tr><tr><td>0x49c333017bd04633f8ed7a7dd62973d23adabccc</td><td>5,288,293.00</td><td>1</td></tr><tr><td>0xda96cdce297172d0c958b4a6ec1504826a2f8ef5</td><td>5,100,569.65</td><td>2</td></tr><tr><td>0x707e594b6bcd169d240d1f63832f0aabe3a63b27</td><td>4,936,787.96</td><td>1</td></tr><tr><td>0x9e7e03c0b657b39414437c1a3367c020fde91a55</td><td>4,156,321.00</td><td>1</td></tr><tr><td>0xa6c3136789a25a1fc0f0437e56889a0fd7955397</td><td>4,053,256.00</td><td>1</td></tr><tr><td>0x5ebf6f91cb7f5116da2d82cd22ec57ec313b3354</td><td>3,896,582.00</td><td>1</td></tr><tr><td>0x10fb9c7bf06e61b5abaad2420096fb0c85036162</td><td>3,789,651.00</td><td>2</td></tr><tr><td>0x3968e5382d2fa328519732cf2bae0e1eed332afc</td><td>3,648,486.52</td><td>1</td></tr><tr><td>0xd626c45cdc5f9d82bb3c434bc85a6cd867f2ba54</td><td>3,625,481.00</td><td>1</td></tr><tr><td>0xd2a2840a135936dbc857b4fd025d35e1d453926b</td><td>3,569,874.00</td><td>1</td></tr><tr><td>0xfe77db9c832b80dba1ea1ce58d6029452bfc57a2</td><td>3,500,000.00</td><td>1</td></tr><tr><td>0xdec938123e90c6ee4a0337081c34f974dd6a82b7</td><td>3,401,421.81</td><td>1</td></tr><tr><td>0x2bc31b25f8e6379b405d258da07427a16d8fa20c</td><td>3,259,695.90</td><td>1</td></tr><tr><td>0xd6990e42afd98312be086c7d58a21f081066b89c</td><td>3,158,742.00</td><td>1</td></tr><tr><td>0x880e2b96906451576d9cd674dac3f78f6117541c</td><td>3,145,872.00</td><td>1</td></tr><tr><td>0xe869376a71be3ee0968162eb316deed744f4903d</td><td>3,087,180.90</td><td>1</td></tr><tr><td>0xd6e07bd0b2dfbdbbf7eeb7b8e8bfa9533d27b5dc</td><td>3,055,874.00</td><td>1</td></tr><tr><td>0x6648aac06dde0f90582f22397be65c1d74792869</td><td>2,900,000.00</td><td>1</td></tr><tr><td>0xe50279924821bb8b581d32345dccd28488894fe2</td><td>2,896,522.00</td><td>1</td></tr><tr><td>0x660a09d02bf6ed992467d9cfe0625a30adb74d7c</td><td>2,894,652.00</td><td>1</td></tr><tr><td>0x4efac3220ec7a50e604b5f6cb3af1ea827ebfa20</td><td>2,874,512.00</td><td>1</td></tr><tr><td>0x73ea304b8cc0a3a733f7200409eea9f88d0ca974</td><td>2,865,414.00</td><td>1</td></tr><tr><td>0xc7e288ee5bdd6be748ffbcaf693b106b21cb0f92</td><td>2,850,002.00</td><td>14</td></tr><tr><td>0xb286ae2e49c0eccde9accf36ed271b0c584868c3</td><td>2,841,256.00</td><td>1</td></tr><tr><td>0xfdd71ebfc3f4a82e0d3e92da75c361359961aa67</td><td>2,834,518.18</td><td>1</td></tr><tr><td>0xe43eedf3f6d1268c232406a349b6522ab1692534</td><td>2,750,000.00</td><td>1</td></tr><tr><td>0x23400f1797eb4791650354b20c24392c51f3af98</td><td>2,750,000.00</td><td>1</td></tr><tr><td>0x3ef1123fd15fc59468059ebbd9d95c153d5ad0bc</td><td>2,510,986.50</td><td>1</td></tr><tr><td>0xaa4bfcab17f5e4aef456d278ece918446009a465</td><td>2,500,000.00</td><td>1</td></tr><tr><td>0x80b0ae0ad79a59ef371b55e0cc8b0fcfe73143e2</td><td>2,477,548.60</td><td>1</td></tr><tr><td>0x05411829203a8d9b311a46445a1f9855ce0b0f1a</td><td>2,410,784.00</td><td>1</td></tr><tr><td>0x05414f716065fe9696eeaf8bc2f2a1aaece08c60</td><td>2,400,000.44</td><td>1</td></tr><tr><td>0x7ac81b2215c2c8b16c0538a5b2b8dab7a75bae9c</td><td>2,145,213.00</td><td>1</td></tr><tr><td>0xb801b0edf24d6cb468472f693b37e674e587f33d</td><td>2,100,000.00</td><td>1</td></tr><tr><td>0xe6e50e5c061a809184d8659132001f63dd7f70c7</td><td>1,814,033.29</td><td>1</td></tr><tr><td>0x6b9843cbfae5fcaf8a7609c951d6a409939a7d39</td><td>1,014,889.00</td><td>1</td></tr><tr><td>0x5571c8703412a1482fd47de2bbf97a189f50bbbd</td><td>947,637.00</td><td>1</td></tr><tr><td>0x76b132115652fa22528ef1519f4f0559eee934c5</td><td>932,142.00</td><td>1</td></tr><tr><td>0xa5bffbe5cf50a4c75db955e78623f88ba8a12587</td><td>900,000.00</td><td>1</td></tr><tr><td>0xec106463b17087fee19aa092de6297447d211243</td><td>881,836.00</td><td>1</td></tr><tr><td>0xd1d587da9dacdff914bf89b3ebcd35fed3aa9d97</td><td>868,678.00</td><td>1</td></tr><tr><td>0xa97be158d3a53d364d8bc7d13826d72e300d58d8</td><td>862,140.00</td><td>1</td></tr><tr><td>0x620ef12b7ca3b3932e58d60ae105e345d4f8c855</td><td>839,170.00</td><td>1</td></tr><tr><td>0xc248f65e2e636e5fac93fd7a1a2a66efe0166f1c</td><td>805,717.00</td><td>1</td></tr><tr><td>0x8b5e3691c28e613cc4ec52d5455c66fab9964f7b</td><td>762,141.00</td><td>1</td></tr><tr><td>0xa778ec8d347c4a6a86ed070ded7f29038421b984</td><td>690,233.00</td><td>1</td></tr><tr><td>0x5c2bd975de78745875aa3fae63e94e96cbd3abf4</td><td>680,000.00</td><td>2</td></tr><tr><td>0x0dd5b3d3e3d20ed1403db4b368a11c8fa8a87572</td><td>623,352.00</td><td>1</td></tr><tr><td>0xd118cfa3b67835029b7925c1ec709f99004dda21</td><td>600,000.00</td><td>1</td></tr><tr><td>0x3263b6d70b8d10d7ed96d5f0c3457e409b6c05ba</td><td>600,000.00</td><td>1</td></tr><tr><td>0xe2ebeef0672e0b789859492591e46f8f52f9161f</td><td>578,361.00</td><td>1</td></tr><tr><td>0xa62fe5e7ad7c2f364cd262ac27d0992fb3630fbe</td><td>566,480.97</td><td>1</td></tr><tr><td>0x6ca7bd65395d4426118959d600f86b1d615a89da</td><td>552,701.19</td><td>1</td></tr><tr><td>0x80e317e325bfcbcea01a750bc162f009aebc7a8d</td><td>500,000.00</td><td>1</td></tr><tr><td>0x98890a9d7b84d28b6433899af5a9cdbf1defe1ce</td><td>473,223.10</td><td>1</td></tr><tr><td>0x8b6fa2aee0b84a18238f91e313749b543f7fd7be</td><td>471,028.48</td><td>1</td></tr><tr><td>0xfd10cca5c076093a80c685c687ffde0c449115d8</td><td>402,042.00</td><td>1</td></tr><tr><td>0xc8caa8fc136ea03df911fab48fb27b5c51b76575</td><td>351,620.54</td><td>1</td></tr><tr><td>0x1f6c441ea6659b452e8bd22ffacf09006cbb58e1</td><td>336,888.09</td><td>1</td></tr><tr><td>0x38977dae70ac5cd0daf60fb63537591decf22887</td><td>320,000.92</td><td>2</td></tr><tr><td>0xdc45cf082e5c1c3af45721f73c9de04d7baa3230</td><td>293,434.81</td><td>1</td></tr><tr><td>0x4c1d3a2dcbf4c1cfd4662a4763707a1bc960123f</td><td>263,670.00</td><td>1</td></tr><tr><td>0xd1ec35961858f978c5626d12a8e1707a279aa537</td><td>200,506.00</td><td>1</td></tr><tr><td>0x62fa07b4c1a95598370bc91259192c493e4cc285</td><td>166,781.96</td><td>1</td></tr><tr><td>0x181193b48f0e049542879ac68568ac39f4028de7</td><td>155,226.82</td><td>1</td></tr><tr><td>0x92917854ba09370c554d5411ef71e5d5d09615c7</td><td>89,206.00</td><td>1</td></tr><tr><td>0x16bbf63d1cd22928afb17ff2a30189075dd20de0</td><td>70,713.00</td><td>1</td></tr></tbody></table>

</details>

To better understand the timing of these transfers, we created a chart showing the **inflows of BLOCK tokens to the six MEXC deposit addresses** (purple bars) alongside the **BLOCK token price**.

The chart shows that the largest inflows to these MEXC deposit addresses consistently occurred shortly before the token experienced its most significant price declines. One possible explanation is that these deposits were followed by increased selling activity on MEXC, contributing to additional sell pressure.

However, this interpretation should be treated with caution. Because we do not have access to MEXC's internal trading data or order books, we cannot directly verify whether the deposited tokens were immediately sold. Nevertheless, the temporal correlation between the large exchange inflows and the subsequent price declines is noteworthy and highly suspicious.

<figure><img src="/files/rWs4SnKmIa66TioVSikA" alt=""><figcaption></figcaption></figure>

To summarize, wallets directly linked to the team's managed wallets, or exhibiting strong on-chain patterns indicating they were under the control of the entity behind the BLOCK deployment, transferred **nearly 22% of the total BLOCK supply** to **six MEXC deposit addresses**.

Based on the market price at the time of each transfer, these tokens had an estimated combined value of **approximately $29 million**, assuming sufficient market liquidity to absorb the sales. While on-chain data alone cannot confirm that all of these tokens were sold, the coordinated movement of such a large portion of the supply to the same exchange deposit addresses is a significant and noteworthy pattern that warrants further scrutiny.

### Analyzing the Large Trading Bot Cluster

The most significant finding of this investigation is the identification of a large, coordinated trading wallet cluster that appears to have been used to extract value from the **BLOCK** token.

Our analysis identified substantial on-chain flows of BLOCK tokens from wallets linked to the project team into this trading cluster. The tokens were then continuously transferred between newly created wallets after every few dozen trades. The overall pattern was highly consistent: the wallets repeatedly bought and sold BLOCK, and once sufficient profits had accumulated, the proceeds were transferred to dedicated **profit collector** wallets.

<figure><img src="/files/lKvCjZia6yJWfgFfkLrx" alt=""><figcaption></figcaption></figure>

To date, we have analyzed **more than 3,000 wallets** associated with this cluster. Collectively, these wallets executed **over 150,000 BLOCK swap transactions** and generated **more than $7 million** in realized profits.

The investigation is still ongoing. Not all wallets connected to the cluster have been analyzed yet, meaning that both the total number of wallets involved and the cumulative profits are likely to increase as additional wallet relationships are identified.

<details>

<summary><strong>The table below lists the 25 most profitable trading wallets identified during the investigation.</strong></summary>

<table><thead><tr><th width="433">wallet</th><th width="140">Total USD profits</th><th>Total Swaps</th></tr></thead><tbody><tr><td>0xbf64752dc6e1c5c8fe567aa97658445592b75a85</td><td>190,021.00</td><td>89</td></tr><tr><td>0x8b2f6b5253df61c46b7dc383da2ef5d1dd5e6365</td><td>183,594.62</td><td>824</td></tr><tr><td>0xb234db75cdfe111fbc453c04a1e39953296f2c38</td><td>159,108.69</td><td>87</td></tr><tr><td>0x379d04fe86b788cd24a8ba4a5d4a4c725c2213ee</td><td>151,346.09</td><td>205</td></tr><tr><td>0xd2d5c98414d05350d5fabda3e778225e4f2e875c</td><td>143,435.66</td><td>219</td></tr><tr><td>0x7b2734309e750aad15034048b10e46c1318462ad</td><td>142,668.64</td><td>223</td></tr><tr><td>0x7c282509914ff2b1bbcda88b3f213332edf8871c</td><td>137,406.80</td><td>182</td></tr><tr><td>0x79f5e7ed3b4bb387920293f7273f1686fff354dd</td><td>128,579.39</td><td>80</td></tr><tr><td>0xab3fcb3b4c30f534f4b6cfee8e6a743893dbfbfd</td><td>126,978.43</td><td>553</td></tr><tr><td>0x7ca27acbad5594759937fde92659a43517d0af12</td><td>115,354.89</td><td>87</td></tr><tr><td>0x656138a375e27504467f7fee84ae8752333d3c46</td><td>109,084.11</td><td>274</td></tr><tr><td>0xf65a4906530d34332f9db205bfbec47f8a0f6c56</td><td>107,512.46</td><td>180</td></tr><tr><td>0x2c69d3e91344b8cf19f9f932231f4085ed67e51c</td><td>106,821.20</td><td>537</td></tr><tr><td>0x43a540c6a4316bdd37b6f57383b7c4ba55497ecc</td><td>106,706.88</td><td>259</td></tr><tr><td>0x2d9df84657df7a4a894431037e5b875b75f181b8</td><td>105,137.05</td><td>177</td></tr><tr><td>0x54dcb751a27cc56950a8594f1e03b8fa97fb3e55</td><td>93,764.20</td><td>320</td></tr><tr><td>0xc35283f0e0752f19da7a591dd43a00a3e7825c9c</td><td>93,298.70</td><td>60</td></tr><tr><td>0x8324028e1cea764c81dfdaee160614416f110ffe</td><td>93,186.94</td><td>78</td></tr><tr><td>0xbb0b02626f47a3d4bb152894984b7188a8d67319</td><td>90,715.56</td><td>97</td></tr><tr><td>0x9f14b16e77de147249d68da0cf872bf0c1e4ebf1</td><td>87,450.69</td><td>143</td></tr><tr><td>0x4960c842ac5a8e606f2c59ab50596e141ca3b018</td><td>85,910.73</td><td>126</td></tr><tr><td>0x7c1d888c73fcce6fe9ddf5a488c7d3bd04439b83</td><td>85,172.05</td><td>280</td></tr><tr><td>0xf03736435697c4ea85a25c6c82a2ca43dd83c94b</td><td>84,702.04</td><td>314</td></tr><tr><td>0xcee14cf8fe7c5c66fce593c3ab8003169c0e9252</td><td>83,160.51</td><td>196</td></tr><tr><td>0xe50119e453b7c16ea5c30fe4c2b2d9d0cb8a2f5f</td><td>79,997.22</td><td>150</td></tr></tbody></table>

</details>

The timing of this activity closely matches the behavior previously observed in the smaller trading wallet cluster. The larger cluster became active immediately after **July 23, 2025**, coinciding with the end of the smaller cluster's operations. This strongly suggests that the larger cluster was not an independent operation, but rather a continuation and expansion of the same coordinated trading strategy.

The chart below illustrates the trading activity of the large wallet cluster, aggregated into **12-hour intervals**, alongside the **BLOCK token price**. It also shows the **net realized profits** generated during each interval, allowing the trading activity and profit extraction to be compared directly with the token's price movements over time.

<figure><img src="/files/A75HW5PDQ0npn1ZfV8nE" alt=""><figcaption></figcaption></figure>

After analyzing the trading patterns and swap activity, we shifted our focus to the profit flows. The profits generated by the trading wallet cluster had to be transferred somewhere, and by tracing the on-chain transactions, we identified several primary extraction paths:

* **Profit collector wallets.** A large portion of the profits was consolidated into a small number of dedicated **profit collector** wallets. These wallets aggregated funds from multiple trading wallets before redistributing the proceeds to other wallets or transferring them to centralized exchanges. The list below shows the largest profit collector wallets identified during the investigation:
  * [`0x52a673ca01b9e7d214fff905cf5c0b2882f80472`](https://etherscan.io/address/0x52a673ca01b9e7d214fff905cf5c0b2882f80472): Between **2025-07-26** and **2025-08-09**, the wallet received **2,454,089 USD1** and **545 ETH** from multiple trading wallets. At the time, the ETH was worth **more than $2 million**, bringing the total value of the received funds to over **$4 million**. The funds were subsequently transferred through multiple intermediary wallets before being largely consolidated into deposit addresses belonging to centralized exchanges.
  * [`0x07484edC16A450bd8e746892C50077D5EB5B9bfB`](https://etherscan.io/address/0x07484edc16a450bd8e746892c50077d5eb5b9bfb): On **2025-08-07**, the wallet received approximately **250,000 USD1** and **65 ETH** from multiple wallets belonging to the identified trading cluster.
  * [`0x0031eF0B0A0b10A31022a0E26A3A01eA821a42Ff`](https://etherscan.io/address/0x0031ef0b0a0b10a31022a0e26a3a01ea821a42ff#tokentxns) : Received **109,816 USD1** from **five trading wallets** on **2025-08-15**.
  * [`0xb49d4460bd7BE6cEf74b416ABc0610905955228c`](https://etherscan.io/address/0xb49d4460bd7be6cef74b416abc0610905955228c): Received **250,000 USD1** and **60.35 ETH** from **ten trading wallets** on **2025-08-20**.
  * [`0x66Db77E2cF6d03D48b7bAB6025E9544010dF8297`](https://etherscan.io/address/0xcae49eb72a359b659c3259cf168bb13d0d7bc7cf):  On **2025-08-22**, the wallet received **93 ETH** and **150,000 USD1** from multiple wallets belonging to the identified trading cluster.
  * [`0x66Db77E2cF6d03D48b7bAB6025E9544010dF8297`](https://etherscan.io/address/0x66db77e2cf6d03d48b7bab6025e9544010df8297#tokentxns): On **2025-08-24**, the wallet received **486,000 USDC** from wallets belonging to the identified trading cluster.
* **Direct transfers to exchange deposit addresses.** Some of the larger profits were sent directly from the trading wallets to deposit addresses belonging to centralized exchanges, bypassing the profit collector wallets. Several examples are presented below:
  * The **Bybit deposit wallet** [**0x1f419Ce849d6Ee4e54Fd3b6295D3BCEFfeC36C2d**](https://etherscan.io/address/0x1f419ce849d6ee4e54fd3b6295d3bceffec36c2d#tokentxns) received a combined **221,200 USD1** from two trading wallets:
    * **2025-08-08** – **119,812 USD1** from [**0x4b0d2D86401a2E9A5059FCCAeD6AE118C5309C50**](https://etherscan.io/address/0x4b0d2D86401a2E9A5059FCCAeD6AE118C5309C50)
    * **2025-08-11** – **101,388 USD1** from [**0xE3250846ed8d851f968225AA778194dEE70688cF**](https://etherscan.io/address/0xe3250846ed8d851f968225aa778194dee70688cf)
  * **2025-08-27** – **70,000 USD1** was [transferred](https://etherscan.io/tx/0xb2e3b509f9f87a56fb448fdf14884c5820d4514136c19c7c52aa110dfa9fee40) to the **KuCoin** deposit wallet [**0xf7d33f4713d5690a73a4bcb0f71be61e33a5d8a0**](https://etherscan.io/address/0xf7d33f4713d5690a73a4bcb0f71be61e33a5d8a0#tokentxns)
  * **2025-08-29 - 105,264 USDT** was [transferred](https://etherscan.io/tx/0x23dc0140bdea710348c6d61faa1fd9e375b69a23c3fdfd2e1e4073442ca66557) to the Gate deposit wallet [**0x236Bc37bE7D1f40dc3Fc2590f076469A73e06D63**](https://etherscan.io/address/0x236bc37be7d1f40dc3fc2590f076469a73e06d63#tokentxns)
* **Remaining BLOCK tokens transferred to exchanges.** In addition to stablecoin profits, significant amounts of BLOCK tokens were transferred directly to exchange deposit addresses, where they were likely intended for sale.
* **Numerous small exchange deposits.** We also identified hundreds of smaller deposits, typically **0.4 to 1 ETH** per transaction, although some were several ETH, to deposit addresses associated with multiple exchanges, including **HitBTC, ChangeHero, ChangeNOW, Binance, KuCoin,** and **HTX**.

<figure><img src="/files/LyJXY3LdUsTRv53QmMl5" alt=""><figcaption></figcaption></figure>

This part of the investigation is still ongoing, and we will update this chapter as new findings become available.

Based on the evidence collected so far, the on-chain data indicates a coordinated operation that can be traced back to wallets directly linked to the BLOCK token deployment. As the investigation progresses and additional wallet relationships are analyzed, we expect to further refine and expand these findings.

## Current Project Status

To conclude this report, we examine the current status of the **BLOCK** project following its acquisition by **AI Financial** in **April 2026**.

Our objective is to determine whether the project remains actively developed or whether the team may be preparing for a migration to a new token, similar to what occurred with **MIXIE**.

We begin with an overview of the project's public communications and social media activity, followed by an on-chain analysis of the most recent wallet activity and token movements.

The [acquisition announcement](https://x.com/BlockStreetXYZ/status/2049860370144067748) did not provide any concrete details about the future of the **BLOCK** project or the role of the **BLOCK** token going forward.

<figure><img src="/files/Dzv7HEhIdW1pi06Io6Dc" alt=""><figcaption></figcaption></figure>

Following the acquisition, the project's communication on **X** declined significantly. Although a few announcements have been published, they have been largely high-level updates and have not addressed key questions regarding the project's roadmap, the utility of the BLOCK token, or any plans for its future. Overall, communication from the team has been limited and lacks the level of transparency that token holders would reasonably expect.

At the time of writing, the most recent post on the official X account was [published on **July 2**](https://x.com/BlockStreetXYZ/status/2072772328711414062), providing only a general summary of the project's June activities without offering any substantive updates on the token or its long-term direction.

The LinkedIn profiles of Blockstreet’s core team members still indicate that they are actively working at the company. However, no public announcement has explained how the team structure changed following the acquisition.

We were able to confirm that **Matt Morgan** continued working as **Global Head of Vision at AI Financial**, but we found no comparable announcements regarding the roles or future involvement of the other Blockstreet team members.

Our research also identified announcements that **BLOCK** was being removed from several centralized exchanges:

* **MGBX:** [*MGBX Will Delist BLOCK/USDT, FLOCK/USDT, and XCX/USDT Spot Trading Pairs*](https://support.mgbx.com/hc/en-gb/articles/16028824201359--Spot-Delisting-MGBX-Will-Delist-BLOCK-USDT-FLOCK-USDT-XCX-USDT-Spot-Trading-Pairs)
* **MEXC:** [*MEXC Announcement on ST Warning  (June 2026)*](https://www.mexc.com/announcements/article/mexc-announcement-on-st-warning-june-2026-17827791535843)

<figure><img src="/files/UiYHcDNZ6nvup70O4gao" alt=""><figcaption></figcaption></figure>

[CoinGecko currently shows](https://www.coingecko.com/en/coins/block-4?chart=type%3Dprice%26mode%3Dline%26timeframe%3Dmax) only one CEX listing:

<figure><img src="/files/7OyVLT16gNBWhsUNcRzz" alt=""><figcaption></figcaption></figure>

Exchange delistings and special-treatment warnings are generally negative indicators, particularly when they occur alongside declining project activity and limited communication from the team. While these announcements do not independently prove that the project has been abandoned, they raise additional concerns about its current status, liquidity, and long-term viability.

From an on-chain perspective, the only significant recent activity originated from [**0xD9EcDb415841761043520A8c7F043437127718Ef**](https://etherscan.io/address/0xd9ecdb415841761043520a8c7f043437127718ef#tokentxns), the **Blockstreet company multisig wallet**.

<figure><img src="/files/Qg4vHfbMVnPYPq9ruAKq" alt=""><figcaption></figcaption></figure>

In **May 2026**, the multisig transferred a total of **50,000,000 BLOCK** to three wallets. The tokens were then distributed through several intermediary wallets before being deposited into centralized exchanges (before the delistings) or sold through decentralized exchanges.

No other significant on-chain activity was identified during the past several months. Combined with the limited public communication and declining social media activity, the available evidence suggests that activity surrounding the project has been substantially reduced.

Based on the information available at the time of writing, it is difficult to draw definitive conclusions about the future of the **BLOCK** token. However, from both an on-chain and public communications perspective, the project appears to be in a state of minimal activity, with few signs of ongoing development or ecosystem growth. While it is not possible to conclude that the token has been abandoned, the current evidence indicates that it is no longer being actively developed or promoted.

## Mixie On-chain investigation

A comprehensive on-chain investigation of the **MIXIE** token would require a substantial amount of additional analysis. Rather than delaying the publication of this report, we decided to release our findings on the **BLOCK** token first and address MIXIE in a separate report in case of interest.

On **June 6, 2025**, we published a preliminary review of the MIXIE token, where we identified several suspicious wallets and token extraction patterns. A summary of those initial findings can be [found in our post](https://x.com/blokiments/status/1931098167266758879).

During the course of the BLOCK investigation, we revisited the MIXIE wallets and uncovered significantly more evidence than was previously known. Our analysis indicates that a large portion of the token supply was acquired, traded, and ultimately sold through wallets linked to the same entity behind the MIXIE deployment.

If there is sufficient interest from the community, we will publish a dedicated, in-depth on-chain investigation of the MIXIE token covering the full wallet network, token distribution, and fund flows.

Let us know if you would like to see that report.

## Conclusion

This investigation traced the on-chain activity surrounding the **BLOCK** token from its deployment through its subsequent distribution, trading activity, and current state.

The analysis identified a direct on-chain link between the wallets involved in the deployment of the **BLOCK** token and wallets previously associated with the **MIXIE** token on BNB Smart Chain. Funds generated from the MIXIE ecosystem can be traced through bridge transactions and intermediary wallets to the wallets that funded the deployment of BLOCK, establishing a clear relationship between the two projects at the wallet level.

The investigation also found that the official token distribution closely matched the published tokenomics for the largest allocations. However, once distributed, a substantial portion of the supply was transferred through large networks of intermediary wallets before ultimately reaching centralized exchanges. More than **20% of the total token supply** was traced to a small number of MEXC deposit addresses, representing one of the largest identifiable destinations for team-linked tokens.

One of the most significant findings was the identification of a large, coordinated trading wallet network. To date, more than **3,000 wallets** connected to this operation have been analyzed, revealing over **150,000 BLOCK swap transactions** and more than **$7 million** in realized trading profits. The investigation also identified a smaller predecessor cluster that operated immediately after launch, followed by a much larger trading operation beginning in late July 2025. The timing and on-chain behavior suggest that both clusters formed part of the same coordinated operation.

By tracing the proceeds from these trading wallets, the investigation identified several recurring profit extraction paths, including dedicated profit collector wallets, direct transfers to centralized exchange deposit addresses, and numerous smaller deposits across multiple exchanges. The movement of profits and tokens followed consistent patterns that were repeated across hundreds of wallets.

Finally, the investigation examined the project's current status following its acquisition by **AI Financial**. Public communication has become limited, several centralized exchanges have delisted or restricted trading of the token, and recent on-chain activity has been relatively low apart from transfers originating from company-controlled wallets. At the time of writing, there is insufficient evidence to determine the project's long-term plans, although both the public communication and on-chain activity indicate a significant reduction in project activity.

It is important to note that on-chain analysis can establish relationships between wallets, reconstruct fund flows, and identify recurring behavioral patterns, but it cannot by itself determine the intent behind those transactions. The findings presented in this report are based solely on publicly verifiable blockchain data and should be interpreted in that context.

The investigation remains ongoing. As additional wallets are analyzed and new evidence becomes available, this report will be updated with further findings and refinements.