- ZachXBT says Shawn Liu and Gracy Chen are behind the repeated platform exploits.
- According to ZachXBT, Bitget inflated LAB’s value to bait retail before the exploit.
- Bitget supporters called ZachXBT a racist for calling out the cryptocurrency exchange.
Renowned blockchain investigator, ZachXBT, has launched an attack on Bitget over a recent exploit on the centralized exchange. ZachXBT accused the exchange of inflating LAB’s value to bait retail. He likened the situation to CEXs bundling 90%-plus in meme coins with low liquidity, and any notable sell would nuke the chart.
Bitget is Involved in Another Exploit
ZachXBT made the allegation while discussing the latest exploit on Bitget involving the withdrawal of 100 million LAB, equivalent to $480.33 million, reflecting 32.26% of the crypto token’s circulating supply. The on-chain investigator accused the BGX Group owner, Shawn Liu, and Bitget executives of involvement in the hacks happening on the Bitget exchange.
According to ZachXBT, Liu is the “biggest boss” who allows the scams to operate behind the scenes, while Bitget CEO Gracy Chen is only the face of it. The investigator said the Chinese CEX cartel has gone unchallenged for many years and doesn’t care, as long as they benefit from the activity. He called on the public to increase its attack against Bitget over the issue.
ZachXBT’s allegation forced a response from Bitget supporters, some of whom tagged him a racist for attacking those behind the exchange. However, he denied the racism tag, stating that he had called out other platforms in the past, including Coinbase, over similar issues. He further asked his critics to support their claims with evidence rather than attacking him.
Crypto Community Reacts to Increasing CEX Exploits
Advising the public about the issues on Bitget, ZachXBT warned against relying on Key Opinion Leaders’ (KOLs) promotions. According to him, many KOLs promote tens of projects per month without bothering about whether they are scams or not. However, he noted that higher-quality KOLs promote 3-5 projects per year and maintain high standards because they are concerned for their followers.
The crypto community’s suspicion of CEXs’ involvement in platform exploits is gaining momentum, as a user recently complained about a potential scam on KuCoin Web3. The user posted on X, requesting that the trading platform’s team and CEO properly investigate its Web3 wallet team.
Meanwhile, ZachXBT maintained that the teams behind the trading platforms are aware of what is happening in the ecosystem and are benefitting from the rot. According to him, “your funds are only safe when you are an insider, not a retail trader.”
Related: Crypto Sleuth Exposes Scammer Who Exploited ETH From Crypto Investors
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