ZachXBT who is a well-known Blockchain investigator stated that many important players within the Crypto trading world, which some see as a decentralized front, actually have an elaborate facade in place. In a series of recent revelations that have sent shockwaves through the industry, the pseudonymous investigator has shifted his focus toward Bitget, one of the world’s fastest-growing centralized exchanges (CEX). His latest findings suggest that the leadership we see in public is only half the story.
The Man Behind the Curtain
Gracy Chen has been publicly visible as the primary leader of Bitget for months. She has acted as the public spokesperson for Bitget at international conferences; however, one individual, ZachXBT, has disputed this narrative about Bitget and alleged Shawn Liu is the true creator and “big boss” of Bitget. Liu is said to oversee the internal workings of Bitget’s platform and Gracy serves as the public face of Bitget in order to satisfy regulators and the general public.
ZachXBT alleges that by operating out of the public eye, Liu has been able to create an environment for market manipulation and other types of dubious listing activities to flourish on Bitget. According to ZachXBT, this shadow leadership structure allows Bitget to dissociate from any controversy while continuing to profit from highly-volatile high-risk/token schemes that have predatory characteristics.
Disrupting the Chinese CEX Cartel
Bitget is among several exchanges targeted in a bigger battle being fought by ZachXBT against what he calls the Chinese CEX Cartel – an association of Asian based Centralized Exchanges who allegedly collude to make profits at the expense of retail traders.
The heart of the case surrounds accusations of wash trading and promoting associated pump/dump tokens. Wash trading provides the illusion of artificial volume spikes, and the exchanges are accused of permitting or aiding to conceal those types of activities. Notwithstanding that most exchanges operate in unregulated jurisdictions and have escaped proper scrutiny, ZachXBT sounds the alarm that this unchallenged activity will soon come to an end due in part to on-chain data making these types of behaviours easier to discern.
The LAB Token Controversy
ZachXBT has recently drawn attention to the suspicious activity relating to the LAB token to bolster his arguments. This token saw an incredible 350% increase in value in just 72 hours in early May. An analysis of the blockchain shows that the LAB development team’s wallets moved around 96 million LAB tokens ($63 million) into Bitget just prior to this price increase.
This sort of movement is a typical indication of coordinated market manipulation. ZachXBT also revealed that he believes the mastermind behind the LAB project is Vova Sadkov, who is also known online as ‘vsadkovv’. To assist his ongoing investigation, ZachXBT has put up a $10,000 bounty for information or evidence that connects Sadkov to any illegal activity in the market.
A Call for Accountability and Refunds
The tension between ZachXBT and Bitget reached a boiling point on social media when the investigator directly challenged Gracy Chen. He argued that when market manipulation is detected, centralized exchanges have a moral and ethical obligation to freeze the profits of market makers and distribute those funds back to the victims.
“CEXs need to freeze MM profits and distribute to users when these games happen,” ZachXBT posted. The challenge highlights a growing frustration within the crypto community: while exchanges collect massive trading fees from volatile “scam” tokens, the retail investors who lose their savings rarely see any form of restitution. So far, Bitget’s leadership has remained silent on these specific demands.
Why This Investigation Matters
ZachXBT’s track record gives these allegations significant weight. Having previously exposed the North Korean Lazarus Group’s involvement in the $625 million Ronin Bridge heist, his ability to follow the money is undisputed.As the crypto industry moves toward greater institutional adoption, the spotlight on “shadow operators” like Shawn Liu is likely to intensify. If the allegations of a “CEX cartel” are proven true, it could lead to a massive shift in how global regulators approach offshore exchanges. For now, the message to traders is clear: in the world of crypto, the person running the show isn’t always the one holding the microphone.
