Evan Luthra, a prominent figure in the cryptocurrency industry, alleges he lost over $200,000 on the Chinese cryptocurrency exchange Bitget and now accuses the exchange of defrauding its customers.
Bitget reportedly sold coins worth millions the following day after Luthra’s Twitter thread claimed that Bitget had frozen his assets and reported them as suspicious behavior. More than 300 individuals, according to Luthra, have complained to him about this fraud, and some of them have been unable to withdraw their money or get a response from the Bitget team.
In addition, the influencer claims that Bitget has no founder and is run out of a phoney shell firm in Africa, with over half of the firm’s reserves held in its token $BGB. Bitget also reserves the right to lawfully freeze and remove any funds stored on the platform, as stated in the terms of service. Luthra further believes that most Bitget followers are phoney and bots since the platform is dependent on expensive marketing and advertising.
As per the crypto influencer, Bitget has allegedly ignored his requests for an in-person explanation of the situation. Instead, he believes that the firm is funding influential accounts to spread false information about him for selling the coins.
In light of this occurrence, Indian crypto exchange CoinDCX’s founder Neeraj Khandelwal posted a warning about the dangers of dealing with anonymous, faceless, centralized exchanges. His point was that the cryptocurrency industry should gravitate towards those whose founders are well-known figures.
Should never trust centralised exchanges without faces. https://t.co/I2hzkhK8CJ
— Neeraj, CoinDCX (@nrjkhandelwal) April 4, 2023
Bitget, which had been accused of stealing thousands of dollars from investors, has denied the allegations. The REELT team’s accounts were frozen by the exchange owing to suspicious behavior, the exchange said.
The REELT crew reportedly liquidated their REELT tokens immediately after Bitget launched the asset on March 23, raising suspicions of an exit fraud plan, as reported by the exchange.
The platform showed that the asset’s price dropped by 60% after the big dump. Moreover, according to the exchange, REELT lost 81% of its value in under eight hours, falling from $0.1507 at 9:35 AM (UTC) to $0.02802 at 5:25 PM (UTC).
Bitget said that after listing the reel token, it got multiple user complaints about a dumping scam. The exchange responded by saying it has frozen four REELT team accounts; one of these accounts belonged to Evan Luthra, a well-known blockchain analyst and investor who is also an adviser to the REELT team.
