In a striking allegation, crypto investigator ZachXBT has raised serious concerns about the operations of Bitget, one of the leading cryptocurrency exchanges in the world. According to ZachXBT, executives at Bitget are enabling fraudulent activities, allowing multiple scams to function beneath the surface. The investigation follows the withdrawal of an astonishing $480 million worth of the cryptocurrency LAB from the exchange within just 12 hours, representing a considerable 32% of the total supply.
The LAB token, associated with a trading infrastructure firm of the same name that claims to leverage an “AI research engine,” has come under scrutiny. Another crypto analyst, known as Specter Analyst, has purportedly tracked the deposit of millions worth of LAB tokens to Bitget by the LAB team, coinciding suspiciously with a significant price surge early in May. This has led analysts to suspect a coordinated pump-and-dump scheme potentially benefitting Bitget.
ZachXBT specifically named Shawn Liu, the founder of Bitget, as the central figure enabling these alleged scams, while Gracy Chen, the exchange’s CEO, was described as merely the public face of the operations. The investigator characterized Bitget as a “cartel,” asserting that it has operated unchecked for years, prioritizing profit over ethical standards. He warned that public scrutiny and criticism of the exchange are likely to intensify.
In a prior effort to uncover more about the alleged scams, ZachXBT had offered a $10,000 reward for insider information on LAB’s founder, Vova Sadkov, and the listings of LAB across other major exchanges like Bybit, Binance, and OKX. He emphasized the need for accountability, stating, “These grifters are further hurting the industry reputation and it must not go unpunished.”
The concerns surrounding Bitget are not new, as the exchange had previously faced scrutiny for suspicious listings. Notably, the listing of the token $RAVE raised eyebrows when its trading volume skyrocketed to over $300 million, only for its price to collapse by 97% shortly thereafter. Despite promises from Bitget to investigate these irregularities, ZachXBT observed a lack of timely updates regarding the $RAVE case.
In a previous incident, Bitget had also faced regulatory challenges in Singapore, where it was suspended for refusing to delist a token themed around the popular South Korean boy band BTS, which was found to be using unlicensed images.
As the investigative probing continues, Protos has reached out to Bitget for a statement regarding the LAB token withdrawals and will provide updates should a response be received. The unfolding situation highlights the growing concerns over regulatory scrutiny and the integrity of cryptocurrency exchanges in an industry increasingly marred by accusations of fraud and unethical practices.
