Opinion: Is this exchange the next FTX?

In the first quarter of this year, Bitget avoided me from withdrawing my tokens– in spite of being in full compliance with Know Your Customer protocols.The issue developed in connection with my function in advising a task, ReelStar, beginning in October 2022. I and my attorney, Charles Slamowitz, are now filing match through my to determine whether Bitget stole my funds, as Bitget is refusing to inform me.Related: An ETF will bring a revolution for Bitcoin and other cryptocurrenciesAt this time, I have no idea where my funds are. As far as I know, Bitget may be utilizing them to make its own financial investments– and may be preparing to keep my cash permanently.At first, I thought there was a mistake and that I might clarify things with Bitget– but I quickly recognized that it had not made a mistake.Is Bitget the next FTX?I lost more than $2 million to the FTX debacle and was invited by Fox, CNBC and many others to talk about what I thought went incorrect. FTX fell, in part, because it relied on influencers and marketing to win over casual users while stopping working to focus on tough work on the back end.In another parallel with FTX and its dependence on its own FTT token, a significant part of Bitgets reserves are held in its native token, Bitget Token (BGB), rendering the exchange vulnerable if the rate of its token falls.Bitget messing up token listings?Recently, GPT Guru implicated Bitget of sabotaging its GPTG token listing on the exchange. “Not just that, the Bitget group itself confessed to GPT Gurus CEO about an expert task from within the Bitget team.

One may think an exchange as big as Bitget would be everything about transparency. Ive recognized that is sadly not the case. Crypto exchanges have actually seen their failure due to the fact that of an absence of openness. FTX is a rather agonizing example, and it is still fresh in our memories. According to reports, FTX CEO Sam Bankman-Fried went up to $10 billion in FTX customer funds (without the knowledge or approval of stated consumers) to his trading company Alameda Research, whose properties were held mostly in the exchanges native token, FTX Token (FTT). Binance CEO Changpeng Zhaos statement that Binance was selling its stake in FTT produced panic amongst consumers, which resulted in a bank run and, eventually, the personal bankruptcy of the FTX Group. My experience with BitgetIve been a user of Bitget for a while now. However in the first quarter of this year, Bitget avoided me from withdrawing my tokens– in spite of remaining in complete compliance with Know Your Customer protocols.The problem arose in connection with my function in encouraging a project, ReelStar, beginning in October 2022. ReelStars announcement about my advisory role was very public. Its safe to state it was public knowledge. In the exact same fashion, it was public understanding that I was going to be paid with the jobs tokens. Unlike what the majority of people– consisting of Bitget executives– might think, I do not earn money in dollars to promote projects Im unknown with, unlike celebs including the Kim Kardashians or Floyd Mayweathers of the world. Related: Its time for the SEC to settle with Coinbase and RippleAs such, I only generate income when a projects token grows in value. This is pretty basic, as I am an adviser– not an influencer. I make money in tokens since I bring more than just influence to the table. I link jobs with partners, bring capital, and ultimately, boost trustworthiness. On March 23, it was time for ReelStars native token, Reel Token (REELT), to be listed on exchanges. Bitget charged cash for this right– six figures, in dollars, so you have some concept of what occurs behind the scenes.I had been a consultant on the job for months at that point and was guaranteed compensation in the type of REELT. Having actually not made anything for the work I had put in, I sold less than 3% of my personal REELT holdings– less than.03% of the total REELT supply– with the blessings of ReelStars founders, Navdeep Sharma and Nick Bahl.But my funds– including the Bitcoin and altcoins I already had on the exchange before REELT– were blocked without explanation. I and my lawyer, Charles Slamowitz, are now filing fit through my to figure out whether Bitget took my funds, as Bitget is declining to notify me.Related: An ETF will bring a transformation for Bitcoin and other cryptocurrenciesAt this time, I have no idea where my funds are. As far as I understand, Bitget may be utilizing them to make its own financial investments– and might be preparing to keep my cash permanently.At initially, I thought there was a mistake which I could clarify things with Bitget– but I soon understood that it had actually not made a mistake.Is Bitget the next FTX?I lost more than $2 million to the FTX fiasco and was welcomed by Fox, CNBC and numerous others to speak about what I believed failed. Now, Bitget is acting in a way that is arguably similar to FTX before its fall. It would be sensible for users to consider what that means. Ive been burned currently, and I think Im in a position to mention the concerns surrounding this exchange.I also find it odd that a business like Bitget would work with a former host for a state-owned Chinese television network– Gracy Chen, who worked for Phoenix Television– as a crucial public face for its business. Beyond Chen, we understand little about the exchanges executives. Who are Bitgets real owners? Who is on its management group? Whos managing the user funds in Bitgets custody? Couple of are asking these concerns, and the exchange is declining to offer many answers.And in a continuation of its weird hiring practices, it has brought on non-expert stars, including star Adam DeVine and Lionel Messi, to market its services. This is a harmful precedent originally set by FTX, and it is worrying. Using celebs to market cryptocurrency products to unwary members of the general public– especially millennials and Gen Z– probably isnt perfect for the marketplace. FTX fell, in part, due to the fact that it relied on influencers and marketing to win over casual users while failing to focus on effort on the back end.In another parallel with FTX and its reliance by itself FTT token, a considerable portion of Bitgets reserves are kept in its native token, Bitget Token (BGB), rendering the exchange susceptible if the cost of its token falls.Bitget undermining token listings?Recently, GPT Guru accused Bitget of undermining its GPTG token listing on the exchange. According to GPT Guru, GPTGs listing price was set at $0.0035, but Bitget in fact noted it at $0.084– 24x higher. This resulted in a huge red candle light, which destroyed the launch.”Upon inquiring more about how it took place, we figured out that it was Bitgets own team who was accountable for [the] screwed up $GPTG listing,” Guru said. “Not just that, the Bitget group itself admitted to GPT Gurus CEO about an expert job from within the Bitget group.”Bitget initially consented to compensate users who had lost funds, according to GPT Guru, but has actually given that deleted its messages and stopped communication with the GPT Guru group. This led GPT Guru to threaten legal action against Bitget– but not everybody can manage pricey lawyers.These actions are unreasonable and show improperly on Bitget as a crypto exchange, which takes pleasure in control over its users funds. Whats to stop it from participating in the same doubtful– probably unethical– habits in the future? These problems ought to worry us all. At a time of market unpredictability and looming regulatory action around the world, we deserve more openness from the exchanges we use– and clear guarantees of the habits we can expect.The central question for crypto exchanges is what legal responsibilities they particularly owe to their users– if any. My suit is going to find out.This column is a counterpoint to Bitgets perspective: Bitget acted fairly on crypto influencers accountEvan Luthra is a 28-year-old cryptocurrency entrepreneur who offered his very first business, StudySocial, for $1.7 million at 17 and had developed over 30 mobile apps prior to he was 18. He ended up being involved with cryptocurrency in 2014 and is currently building CasaNFT. He has actually invested in more than 400 crypto projects.This article is for general info functions and is not meant to be and must not be taken as legal or financial investment advice. The ideas, viewpoints and views revealed here are the authors alone and do not always reflect or represent the views and viewpoints of Cointelegraph.

The blockchain market has been revolutionary, to say the least. In the last three years, the crypto market has actually impacted and changed lives positively– mine consisted of. And this is why I am an enormous supporter of cryptocurrencies and their power to provide anyone financial flexibility. Maybe that is why MicroStrategy CEO Michael Saylors quote calling Bitcoin (BTC) “digital gold” resonates with me. As an industry still in its nascent phases, I have had my fair share of regrettable events happen to me, but none as bad as what Ive experienced with Bitget. Permit me to share the information of the ordeal in which Bitget took more than $200,000 of my cash, straight caused more than $2.5 million in losses, and– by my price quote– more than $10 million in reputational damage.I have lost:$ 16M+ due to Bitget$ 4M+ staked on UST/ Luna$ 2M held in FTX$ 1M+ held in FreewayAnd far more in other scams.Here are my 7 learnings that can conserve you countless dollars: [Immediate Bookmark]– EvanLuthra.eth (@EvanLuthra) August 15, 2023