- On-chain investigator ZachXBT alleges insiders control over 95% of the LAB token supply and orchestrated a 350% price surge to a $6 billion valuation using Bitget infrastructure.
- A sudden withdrawal of 100 million LAB tokens, worth approximately $480 million, occurred within a 12-hour window, triggering severe liquidity concerns and market volatility.
- Blockchain intelligence firm Arkham Intelligence confirms that a single entity likely controls more than 90% of the token supply, raising alarms about market manipulation.
- ZachXBT has accused Bitget leadership of facilitating these arrangements and labeled the exchange part of a "Chinese CEX cartel" that allows scams to operate for profit.
The crypto market is currently witnessing intense scrutiny surrounding the LAB token, an AI trading terminal project that recently experienced a massive valuation spike followed by a rapid crash. On-chain investigator ZachXBT has published a detailed investigation alleging that insiders control more than 95% of the token supply . The investigation claims the team coordinated a 350% price surge in early May 2026, reaching a fully diluted valuation of $6 billion, before the price crashed by over 65% within hours.
Key evidence presented in the report includes wallets linked to the LAB team depositing 96 million LAB tokens into Bitget prior to the pump. Between March and April 2026, insiders accumulated 226 million LAB in Bitget addresses, positioning themselves to benefit from the subsequent price action . Shortly after the price peak, 100 million LAB tokens, valued at approximately $480 million, were moved to ten freshly created wallets within a 12-hour window . This withdrawal represented a significant portion of the circulating supply, leaving the market with severely thin liquidity.
What Mechanisms Were Used to Extract Value from Retail Investors?
ZachXBT identified four concurrent mechanisms for retail value extraction that characterize the LAB token's recent market behavior. First, co-founder Vova Sadkov signed private over-the-counter loan agreements with 7.5% monthly interest and 60–80% discounts to market . These deals included requirements for Key Opinion Leaders to promote the project before token unlocks, creating artificial demand .
Second, the team unilaterally extended the cliff period for public sale participants from three to nine months without consent . This change effectively locked retail investors into longer holding periods while insiders maintained liquidity advantages. Third, creators running promotional campaigns have reported unpaid rewards and unclear timelines for compensation .
Fourth, an opaque market-making agreement between LAB and an unnamed counterparty allowed for coordinated price management without transparency . This arrangement facilitated the price surge while obscuring the true distribution of tokens. Analysts suggest that up to 99% of LAB tokens are held by insiders or market makers, who use deposits to exchanges ahead of pumps to coordinate activity .
Why Is Bitget Under Fire for Its Role in the LAB Token Manipulation?
ZachXBT has escalated allegations against Bitget, accusing the exchange of facilitating market manipulation for the LAB token. The investigator specifically targeted Bitget leadership, stating that Shawn Liu is the behind-the-scenes operator allowing these scams to operate while Gracy Chen serves as the public face . The investigation highlights concerns over Bitget's listing and trading practices for projects with concentrated insider control .
Bitget holds a massive stake of $1.2 billion in LAB tokens, creating a potential conflict of interest . This position incentivizes the exchange to facilitate trading and price action that benefits its own balance sheet, despite listing assets with opaque ownership structures . ZachXBT criticized the exchange for lacking transparency regarding LAB's market-making activities, contrasting this with Bitget's previous response to allegations involving the RAVE token .
The investigator has called for Binance, Bitget, and Gate to freeze insider profits or delist LAB immediately . A $10,000 bounty has been posted for evidence of market-making contracts and insider communications . Blockchain analytics firm EmberCN supported claims that insider wallets accumulated tokens at low prices before moving them to exchanges like Gate.io and KuCoin after price surges .
What Are the Market Risks Associated with LAB Token Concentration?
Arkham Intelligence has issued a warning regarding the extreme token concentration of the LAB project, which currently holds a market capitalization of approximately $4 billion . On-chain analysis indicates that a single entity likely controls more than 90% of the token's supply . This concentration comes amidst a massive 3000% rally in the token's price over the past three months .
The findings highlight a severe lack of decentralization, suggesting that retail participants face limited liquidity and high exposure to potential market manipulation . The structural risks inherent in projects with such heavily skewed distribution dynamics pose substantial threats to investors . The token's $6 billion fully diluted valuation contrasts sharply with its thin market, creating a liquidity trap where rapid pumps attract retail traders .
However, the broader market context includes shifts in other digital assets. Dogecoin, for example, is seeing growth driven by infrastructure development rather than solely by social media influence. This divergence highlights the varying risk profiles across the crypto market, with LAB representing a high-risk, high-concentration scenario compared to more established assets.