key takeaways:
The well-known cryptocurrency personality Evan Luthra claims to have lost over $200,000 on the Chinese cryptocurrency exchange Bitget and is now accusing the exchange of cheating its clients.
In Luthra’s Twitter thread, it is claimed that Bitget froze his money and reported it as suspicious behaviour before selling millions of dollars’ worth of coins the following day.
The well-known cryptocurrency industry personality Evan Luthra claims to have lost over $200,000 on the Chinese cryptocurrency exchange Bitget and is now accusing the exchange of deceiving its clients.
The day after Luthra’s Twitter thread alleged that Bitget had frozen his property and reported them as suspicious behaviors, Bitget is said to have purchased several million dollars in cash. According to Luthra, more than 300 people have reported to him about this fraud, and some of them were unable to withdraw their money or get in touch with the Bitget staff.
The influencer also claims Bitget has no founder and is run out of a fictitious shell business in Africa with almost half of its funds in their cryptocurrency $BGB. Furthermore, according to Luthra, Bitget is entirely dependent on paid advertisements and marketing, with the majority of its fans being fake and automated.
The REELT team reportedly dumped their REELT tokens soon after Bitget listed the asset on March 23, leading the exchange to suspect an exit scam scheme.
According to the platform, the huge dump resulted in a 60% drop from the asset’s initial opening price of $0.07. According to additional data, REELT fell 81% in eight hours, from $0.1507 at 9:35 AM (UTC) to $0.02802 at 5:25 PM (UTC).
There are speculations that Bitget began dumping those tokens in their name, which caused the price to crash and also resulted in the theft of my money. The influencer also asserts that almost 50% of reserves are held in Bitget’s $BGB token and compares this scenario to the infamous FTX just before it collapsed.
Luthra continues to discuss the terms of service—– Bitget retains the right to legally freeze and withdraw any funds stored on the platform. Given that the Bitget platform relies on expensive marketing and advertising, The influencer further thinks that the majority of its users are fakes and bots.
Bitget has allegedly declined Luthra’s requests for a direct explanation of the situation. As an alternative, he asserts that the business is funding prominent advocates and accounts to disparage him for selling the tokens. Luthra is advising the cryptocurrency community to switch to decentralised exchanges or to use reputable exchanges with creators like Changpeng Zhao, CEO of Binance.
Neeraj Khandelwal, the founder of Indian cryptocurrency exchange CoinDCX, issued a warning on his website about the risks of using centralized, anonymous exchanges in light of this incident. His argument was that the cryptocurrency sector ought to favour projects with well-known creators.
