In a significant development within the cryptocurrency landscape, ZachXBT has leveled serious accusations against the cryptocurrency exchange Bitget, alleging that it has facilitated supply control manipulation concerning several tokens, specifically naming RAVE, RIVER, SIREN, and LAB. These allegations bring to light an ongoing controversy surrounding market practices and regulatory oversight in the digital asset space.
ZachXBT claims that Bitget has allowed “sketchy active market makers” to exploit retail users through manipulation schemes tied to the supply of these tokens. According to his findings, a dramatic instance of this occurred recently when ten newly created wallets collectively withdrew 100 million LAB tokens from Bitget’s hot wallet within a mere 12 hours. This move accounted for approximately 32% of LAB’s circulating supply, representing a staggering $480 million.
The LAB token, associated with an AI trading terminal project, has been under scrutiny for its unusual market behavior. ZachXBT’s investigation revealed that insiders control around 95% of the total LAB supply, creating an environment that stifles genuine price discovery. Earlier this year, LAB’s price surged from about $0.68 to over $4.00 within a span of just five days. This price escalation drove its fully diluted valuation above $6 billion. Moreover, data indicated that wallets connected to the LAB team had transferred a considerable 96 million tokens, valued at $63 million, into Bitget shortly before the price spike.
In the aftermath of these events, ZachXBT has intensified his focus on Bitget and the individuals behind it. He publicly identified Vova Sadkov, also known as vsadkovv, the founder of LAB, as a key player in the alleged manipulation schemes. In an effort to uncover more information, ZachXBT has offered a $10,000 bounty for proof of any fraudulent activity tied to LAB.
The controversy surrounding LAB is not an isolated incident. Similar manipulation concerns were raised when RAVE’s value plummeted by 68% following investigations by Binance and Bitget. Ultimately, RAVE’s token value collapsed nearly 95% from its peak, as RaveDAO denied involvement in any wrongdoing. These incidents have sparked broader concerns about potential systemic manipulation practices within the cryptocurrency market.
ZachXBT argues that the entities behind these schemes appear to operate in tandem across various tokens on Chinese exchanges, creating a pattern that he has identified as systemic. In this context, he has singled out Shawn Liu, the founder and chairman of Bitget, as a significant enabler of these market manipulations, operating behind the public persona of CEO Gracy Chen. ZachXBT has pledged to persist in his campaign against what he refers to as the “Chinese CEX cartel,” indicating that this issue may continue to unfold in the coming weeks and months.
As the cryptocurrency market grapples with the implications of these allegations, the potential for regulatory scrutiny and investor backlash looms large, prompting calls for accountability and transparency within exchanges and among token developers alike.
