Tuesday, November 30, 2021

Lunar Digital CEO accuses Bitmax of running illegal pump and dump scheme

The Takeaway:

Lunar Digital CEO Han Yoon accused BitMax of running illegal pump and dump schemes. Out of Five IEOs on BitMax, four have failed, and the one that succeeded was a personal project of the company's CEO. Yoon alleged that the company's market makers pump the price of tokens by buying them up without caring about liquidity.

ADVERTISEMENTKillerlaunch domains

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?

ADVERTISEMENTBtrz jokerbtc 728x90 en

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Dorsey Gray
Dorsey Gray
Dorsey works in the oil and energy industry since he graduated as a mechanical engineer from Bagdad Senior High School. However, he loves to explore and write about the financial world while he sits in the balcony of his beachside room. Dorsey also loves to cook, but just for himself.

Leave A Reply

Please enter your comment!
Please enter your name here