ZachXBT Exposes Khabib's $4.4M NFT Sale Amid McGregor Crypto Scam Allegations
Introduction: The Octagon Rivalry Moves to the Blockchain
The fierce rivalry between Conor McGregor and Khabib Nurmagomedov has found a new battleground: the cryptocurrency space. On November 26, 2025, McGregor publicly accused the retired UFC champion of orchestrating a scam through his "Papakha" NFT project, which reportedly generated over $4.4 million in just 25 hours. The controversy ignited when promotional posts for the NFT collection were deleted following the sale's conclusion, prompting McGregor's attack. The situation escalated when prominent on-chain investigator ZachXBT entered the fray, turning the tables by highlighting McGregor's own controversial NFT history from 2022. This digital confrontation between two of combat sports' biggest stars underscores growing concerns about celebrity accountability in the cryptocurrency sector and comes amid increasing regulatory scrutiny of NFT projects worldwide.
The Papakha NFT Project: Cultural Tribute or Cash Grab?
Khabib Nurmagomedov's "Papakha" NFT project launched as a digital representation of his iconic traditional hat, deeply rooted in Dagestani culture. The collection featured 29,000 NFTs sold through Telegram, honoring both his undefeated UFC career and his cultural heritage. According to reports, the project generated substantial interest, accumulating $4.4 million in sales within approximately 25 hours. The NFTs were presented as digital keepsakes celebrating Nurmagomedov's legacy and his late father, Abdulmanap Nurmagomedov, who played a pivotal role in his fighting career and personal development.
The project's description emphasized its cultural significance rather than speculative investment potential. However, the subsequent deletion of promotional content following the sale completion raised questions about the project's transparency and long-term intentions. This action particularly caught McGregor's attention, who interpreted it as evidence of malicious intent. The timing of the controversy is notable, occurring as the global cryptocurrency market capitalization recovered to $3.12 trillion, boosted by Bitcoin's price surge above $90,000.
McGregor's Accusations: The "Father's Plan" Becomes "Father's Scam"
Conor McGregor launched his attack on X (formerly Twitter) on November 26, though his post has since been deleted. In his statement, McGregor expressed disbelief that "good guy Khabib used his late father's name, as well as Dagestan's culture, to scam his fans and fire sell a bunch of digital NFT's online and then delete all of the content after they were sold, leaving his fans robbed of their money." He further added, "There is just no way good guy do this. Father's plan has now become Father's scam. Very sad."
McGregor's accusations centered on three main concerns: the alleged exploitation of cultural symbolism, the use of his deceased father's legacy for commercial purposes, and the removal of promotional material post-sale. These allegations gained traction within the crypto community due to McGregor's substantial social media reach and the historical context of their rivalry. The Irish fighter's comments reflected broader skepticism toward celebrity-endorsed crypto projects, particularly those that show signs of abandoned development or disappeared promotional efforts after fundraising.
Khabib's Defense: Cultural Honor Versus Financial Speculation
Khabib Nurmagomedov responded swiftly to McGregor's allegations, branding him "an absolute liar" and defending the Papakha NFT project as a genuine tribute to his heritage and family. In his defense, Nurmagomedov emphasized that the collection was intended as a digital keepsake honoring Dagestani tradition and memorializing his father's influence on his career and life. He insisted the project was never conceived as a speculative cash-grab but rather as a meaningful connection with fans through cultural symbolism.
The retired champion's response highlighted the emotional and cultural significance behind the project, contrasting with McGregor's characterization of it as purely financial exploitation. This defense resonates with similar arguments made by other celebrities involved in NFT projects who position their digital assets as artistic expressions or community-building exercises rather than investment vehicles. However, the deletion of promotional content created ambiguity about the project's ongoing commitment to its community, leaving room for continued skepticism.
ZachXBT's Intervention: A Pattern of Celebrity NFT Behavior
The controversy took an unexpected turn when renowned on-chain investigator ZachXBT entered the discussion. Rather than defending Khabib against McGregor's accusations, ZachXBT redirected attention to McGregor's own NFT history. The investigator reposted McGregor's allegations alongside details about "McGregor Realm," the Irish fighter's 2022 NFT project that followed a similar pattern of heavy promotion followed by quiet disappearance.
ZachXBT simply quoted "Sound familiar?" before later deleting the post, drawing parallels between the two fighters' NFT ventures. This intervention shifted the narrative from a personal feud to a broader examination of celebrity behavior in the cryptocurrency space. By highlighting McGregor's previous project, ZachXBT suggested a pattern where high-profile figures leverage their fame for NFT launches without demonstrating long-term commitment to their communities or projects.
Regulatory Context: NFTs Exit the "Grey Zone"
This celebrity dispute emerges against a backdrop of increasing regulatory scrutiny toward NFTs and celebrity endorsements in the cryptocurrency space. In the United Kingdom, the Serious Fraud Office (SFO) recently arrested two individuals following the £21 million collapse of Basis Markets, a crypto-investment scheme built around NFTs. Investigators reported that promoters had promised investors algorithmic trading returns through NFT-based "membership access" but diverted funds instead.
These developments signal that NFTs are exiting what industry observers have described as a regulatory "grey zone." Regulatory bodies worldwide are showing greater willingness to intervene in cases where NFT projects resemble unregistered securities offerings or demonstrate characteristics of fraudulent schemes. The timing of the McGregor-Khabib controversy coinciding with these regulatory actions highlights growing pressure on celebrities to exercise greater due diligence when attaching their names to cryptocurrency projects.
Historical Precedents: Celebrity Crypto Projects Under Scrutiny
The current controversy follows a pattern established by numerous celebrity-endorsed cryptocurrency projects that have faced criticism and regulatory attention. While not directly comparable in scale or specific allegations, previous incidents involving figures like Floyd Mayweather Jr., DJ Khaled, and Kim Kardashian demonstrate recurring themes of promotional enthusiasm followed by diminished project visibility.
The "McGregor Realm" project from 2022 mentioned by ZachXBT represents a direct precedent within this specific rivalry context. That project similarly received substantial promotion through McGregor's channels before fading from public discussion, creating what critics describe as a pattern of abandoned celebrity NFT ventures. These historical precedents contribute to heightened skepticism toward new celebrity-backed crypto initiatives and reinforce concerns about accountability in influencer-driven cryptocurrency marketing.
Comparative Analysis: Papakha NFTs Versus McGregor Realm
While both projects emerged from combat sports celebrities with massive global followings, they differ in their stated purposes and cultural contexts. Khabib's Papakha NFTs explicitly positioned themselves as cultural artifacts and tributes to family heritage, whereas McGregor Realm presented as a broader digital collectible venture without specific cultural anchoring.
The Papakha project achieved remarkable commercial success with $4.4 million in sales within 25 hours, demonstrating the potent combination of cultural narrative and celebrity influence. Both projects shared similar post-launch patterns regarding reduced promotional activity, though neither fighter has provided detailed roadmaps or ongoing development updates that have become standard practice in established NFT communities.
The scale of Papakha's financial success distinguishes it from many celebrity NFT projects, placing it among higher-grossing influencer-led digital asset sales. This commercial achievement makes subsequent promotional content deletion more conspicuous and potentially more damaging to participant confidence.
Broader Implications for Celebrity Crypto Endorsements
The McGregor-Khabib NFT controversy reflects wider challenges facing celebrity involvement in cryptocurrency projects. As regulatory frameworks evolve and consumer protection expectations increase, celebrities face growing pressure to ensure transparency and deliver on promotional promises. The incident demonstrates how blockchain technology enables public scrutiny of project activity and financial flows, potentially holding influencers accountable in ways not previously possible.
This case also highlights the particular vulnerability of communities that purchase NFTs based on emotional connections to cultural symbols or personal admiration for public figures. When projects associated with these deep connections show signs of abandonment, they risk causing disproportionate disappointment and financial harm to their most dedicated supporters.
Conclusion: Accountability in the Evolving Crypto Landscape
The confrontation between Khabib Nurmagomedov and Conor McGregor over NFT projects represents more than just another chapter in their storied rivalry. It signals a maturation point for celebrity involvement in cryptocurrency, where public figures face increasing accountability for their digital asset ventures. As regulatory bodies demonstrate willingness to pursue NFT-related cases and blockchain investigators like ZachXBT bring transparency to project histories, celebrities can expect continued scrutiny of their crypto endeavors.
For cryptocurrency participants and observers, this incident underscores the importance of looking beyond promotional hype when evaluating NFT projects, regardless of their celebrity associations. The case demonstrates that even culturally significant narratives require thorough due diligence and transparent roadmaps to ensure legitimate long-term value.
As the cryptocurrency market continues evolving toward greater institutional participation and regulatory clarity, incidents like the Papakha controversy may serve as catalysts for improved standards in celebrity endorsements and NFT project development. Market participants should monitor how regulatory responses to similar cases develop and observe whether celebrity-backed projects adapt by providing greater transparency and clearer long-term commitments to their communities.