In a recent escalation of accusations regarding market manipulation in the cryptocurrency sector, investigator ZachXBT has publicly accused Bitget’s leadership of facilitating token manipulation schemes. His comments, which specifically target Bitget’s founder and chairman, Shawn Liu, suggest that the exchange is part of a larger “Chinese CEX cartel” known for its alleged malpractices. This marks one of ZachXBT’s most overt criticisms directed at a centralized exchange.
The situation intensified after blockchain analytics firm Lookonchain identified substantial withdrawals of LAB tokens from Bitget. In a dramatic 12-hour period, 10 wallets collectively withdrew 100 million LAB tokens, valued at around $480 million. This amount corresponds to nearly one-third of the LAB token’s circulating supply. The recent outflow follows a worrying pattern that previously occurred prior to LAB’s significant price surge of over 500% and subsequent plunge of 84% earlier this month. Investigators assert these actions are the result of a coordinated insider manipulation scheme.
ZachXBT took to social media platform X to explicate his allegations, asserting that Liu oversees the operations that permit scams to flourish while Gracy Chen, the public CEO of Bitget, serves only as a figurehead. He has indicated that this situation has persisted unchecked for an extended period and expressed intentions to intensify public scrutiny of Bitget.
The accusations sparked mixed reactions within the crypto community, with some defending Bitget and challenging ZachXBT’s terminology and underlying motivations. One user accused him of racism for his specific reference to a “Chinese CEX cartel.” ZachXBT retorted, countering that he has been equally critical of other exchanges in the past without receiving such accusations.
The substantial withdrawal of LAB tokens has raised alarms, especially considering the historical context and timing. Each of the 10 wallets that received the tokens had no prior transaction history, casting doubt on the motivations behind these transfers. The recent outflows could potentially signal preparations for another round of price manipulation, accumulation by new holders, or even over-the-counter transfers. Without clear communication from Bitget or the LAB team, speculation abounds regarding the motivations behind these wallet movements.
These events mimic patterns seen in the recent RAVE token collapse, where significant withdrawals preceded a severe value crash, resulting in substantial financial destruction for investors. ZachXBT has explicitly linked the two cases in his analysis, underlining concerns about the lack of transparency around both incidents.
Despite these red flags, LAB’s market activity has remained buoyant, with its price rising to approximately $4.76—up 6.23% in the last 24 hours. Currently, LAB boasts a market cap of $1.47 billion, with only a small fraction of its total supply available for trading, suggesting a liquidity issue that could lead to further volatility.
Bitget is facing increased scrutiny on multiple fronts throughout 2026. In addition to the allegations concerning LAB and RAVE, the exchange reported a notable loss of roughly $100 million due to market manipulation involving the VOXEL token. This incident involved a small group of accounts exploiting specific vulnerabilities in Bitget’s trading mechanisms.
To further investigate these allegations, ZachXBT has recently announced a $10,000 bounty for information regarding the identity of LAB’s founder, signaling a shift in focus from individual token analyses to a broader examination of exchange-level accountability. By spotlighting Liu and asserting that Bitget operates as part of a larger cartel, he appears poised to press for more rigorous scrutiny of Bitget’s operational integrity.
Thus far, no official response has been issued by Bitget, Shawn Liu, Gracy Chen, or the LAB team concerning the recent activity surrounding the withdrawals. The founder of LAB has remained notably silent, further deepening the intrigue surrounding this developing situation.
