Token2049 Sponsors Face Scrutiny Over Regulatory Gaps

- Crypto investigator ZachXBT flags “sketchy” sponsors at Token2049. - Concerns raised over anonymous teams, regulatory gaps, and alleged misconduct. On August 2, 2025, Cointelegraph reported that crypto investigator ZachXBT flagged several sponsors of the Token2049 conference, warning that sponsorships do not equate to credibility. He specifically highlighted Spacecoin, JuCoin, Weex, DWF, and Bitunix as problematic, citing their questionable practices, low transparency, and regulatory gaps as major concerns. Title sponsor Spacecoin aims to create a decentralized satellite network for 5G internet coverage. However, the project has faced criticism for its lack of verifiable documentation on satellite launches. ZachXBT referred to it as a "botted project," raising doubts about its operational legitimacy. ZachXBT labeled JuCoin, a Singapore-based cryptocurrency exchange and platinum sponsor, as "sketchy," pointing to its history of frequent ownership changes and its lack of regulation in major financial markets. As a result, these compliance gaps have drawn scrutiny, as regulatory oversight is critical for protecting investors. Weex, another Singapore-registered crypto futures platform and platinum sponsor, operates without regulatory authorization, while social media users have complained about frozen accounts and unexpected Know-Your-Customer (KYC) requirements. These complaints reinforce concerns about the platform's business practices. Critics have accused DWF, a platinum sponsor and market maker, of wash trading, a practice that manipulates market activity to create artificial demand. Additionally, Binance delisted Vite Labs following allegations of a "rug pull" involving DWF's market-making services, further increasing skepticism about the company's operations. Bitunix, a crypto exchange registered in Saint Vincent and the Grenadines, has been flagged by South Korea’s Financial Intelligence Unit for offering services domestically without proper registration. These regulatory inconsistencies expose investors to legal and financial risks. According to Cointelegraph, these flagged sponsors represent a broader pattern in which many speculative cryptocurrency projects use high-profile sponsorships to gain credibility. Such projects often feature anonymous teams, aggressive marketing, and low liquidity. Therefore, these questionable practices pose growing risks to investor trust, particularly when the projects fail to meet regulatory and transparency standards. Past incidents, such as the collapse of JPEX and HyperVerse—both former event sponsors—serve as stark reminders of these risks. Hong Kong regulators flagged JPEX for fraudulent activity, while investigators exposed HyperVerse as a massive Ponzi scheme that relied heavily on event sponsorships for promotion. Both cases resulted in significant financial losses for investors, highlighting the importance of due diligence for both event organizers and investors.