Key takeaways
- ZachXBT accused Bitget of enabling supply control manipulation on RAVE, RIVER, SIREN, and LAB tokens.
- Ten wallets mined 100 million LAB tokens ($480 million, 32% of supply) from Bitget in 12 hours, per on-chain data.
- ZachXBT recently named Bitget founder Shawn Liu as a behind-the-scenes facilitator for Bitget and posted a $10,000 bounty for evidence related to the LAB scandal.
Bitget accused of enabling supply control manipulation
In a Monday post, ZachXBT accused Bitget to allow “active, sketchy market makers to defraud retail users with supply control manipulation schemes,” citing four specific tokens (RAVE, RIVER, SIREN, and LAB) as examples. He added that faced with this situation, Bitget’s response was to pretend that it would investigate without providing any follow-up to the affected communities.
The accusation adds to an already extensive paper trail, as earlier this month ZachXBT revealed its most damning investigation yet, centered on LAB, the token of an AI trading terminal project. According to his public conclusionsinsiders control approximately 95% of the LAB token supply, a level of concentration that makes true price discovery virtually impossible.
The token rose from around $0.68 to over $4.00 in around five days in early May, pushing its fully diluted valuation ( FDV), the theory market capitalization if all tokens were in circulation, above $6 billion. Onchain data showed that wallets linked to the LAB team transferred 96 million LAB tokens worth around $63 million to Bitget before the price surge.
The consequences were rapid and damaging. ten newly created wallets withdrew 100 million LAB tokens, representing 32% of the circulating supply and valued at approximately $480 million, from Bitget’s hot wallet within 12 hours. Zach then identified LAB founder Vova Sadkov (aka vsadkovv) as the alleged architect of the project and posted a $10,000 bounty on X for anyone with definitive proof of LAB-related manipulation.
Systemic and “Chinese” contagion OC “Cartel” model
LAB was not an isolated case because, like Bitcoin.com According to recent reports, RAVE collapsed 68% as Binance and Bitget launched separate investigations into allegations of manipulation, before ultimately collapsing 95% from peak as RaveDAO has denied any involvement or wrongdoing in this matter.
Costs handling warnings also affected other projects immediately after RAVE’s implosion, a ripple effect that ZachXBT had anticipated, arguing that the entities behind these systems are running the same playbook on multiple tokens simultaneously via Chinese exchanges.
He has since identified this trend as systemic, as in an earlier escalation he named Shawn Liufounder and chairman of Bitget, operating behind the public face of CEO Gracy Chen as a key catalyst for the exchange’s role in these projects. He called him by name and warned that his campaign against what he called the “Chinese” OC cartel” would continue to intensify.
