Founder and CEO of Lunar Digital, Han Yoon accused BitMax of indirectly defrauding several IEO projects through pump and dump schemes. In a blog post, Yoon alleges that Bitmax’s market makers were not concerned with providing liquidity to IEO projects but rather pumping the prices by buying up their tokens.
Yoon alleged that Bitmax started its suspicious activities after Shane Molidor became the head of Business Development at the company. According to Yoon Shane had allegedly bragged about their pump and dump tactics from his FBG days. Before Bitmax, Shane had worked at Gemini and IBM.
Yoon informed that all the IEO that launched on BItmax ended up failing except UltraAlpha which is the personal project of Bitmax’s CEO George Cao. Projects that failed with Bitmax include DOS Network, Duo Network, Ferrum Network, and DeepCloud AI. Yoon wrote that he is having a hard time figuring out whether it is Shane Molidor’s complete incompetence, or the company is willingly participating in these pump and dump schemes designed to kill new projects.
According to Lunar Digital CEO, several companies that fell victim to Bitmax are allegedly looking to join forces to take legal action against the company. During Yoon’s research of his friend’s project DEEP, he found that the market maker of Bitmax had burned $1.2million in liquidity in just a few weeks and risked the project at failing. With no buy support, DEEP’s value slumped down violently.
Five of the four IEOs on Bitmax failed, and the one that succeeded was of company’s CEO project. Let us know in comments what do you think of Lunar Digital’s CEO accusations?