10 Fresh Wallets Pull 100 Million LAB Tokens Worth $480M From Bitget
12 May 2026 · 10:30 UTC · Bitcoin.com RSS Feed · Original source
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Summary
Ten newly created wallets withdrew 100 million LAB tokens valued at approximately $480 million, representing 32% of the token's circulating supply, from Bitget exchange within a 12-hour period on May 12, 2026. On-chain analyst Lookonchain flagged the suspicious movement, contributing to an ongoing market manipulation investigation. The coordinated withdrawal follows a 1,000% price pump in LAB and complements separate probes by researcher ZachXBT into questionable trading patterns. The wallets' recent creation combined with the large coordinated exit suggests potential insider coordination or organized market manipulation, raising significant questions about token legitimacy and exchange surveillance effectiveness.
Why it matters
The mechanism is asymmetric information discovery: on-chain evidence of coordinated manipulation triggers immediate repricing as market participants reassess token and exchange safety. Key drivers: (1) Supply shock from 32% exiting exchange simultaneously, (2) Temporal correlation with 1,000% pump indicating pump-and-dump cycle, (3) Wallet freshness suggesting insider coordination rather than organic trading. LAB experiences severe impact through direct manipulation exposure and supply flooding risk. Altcoin sector faces moderate impact through confidence erosion—investors may question exchange surveillance capabilities and token legitimacy broadly. Bitcoin impact limited to sentiment spillover; no direct mechanism. Uncertainties include: actual wallet operator intent, re-entry timing of withdrawn tokens, altcoin contagion extent, and regulatory response speed. Short-term peak volatility as panic selling occurs (minute/hour); medium-term stabilization as fundamental repricing happens (daily/weekly); long-term as market confidence rebuilds (monthly).
Expected impact
The coordinated withdrawal of 100 million LAB tokens (32% of circulating supply) by ten newly created wallets from Bitget creates acute market manipulation concerns. Following a 1,000% pump, this activity pattern strongly suggests a pump-and-dump scheme or coordinated exit by malicious actors. LAB token will experience severe downward pressure as retail investors panic-sell upon discovery of suspicious activity. The broader altcoin sector faces moderate contagion as investor confidence in exchange oversight and token legitimacy deteriorates. Exchange withdrawal of 32% supply could flood markets if tokens are quickly liquidated. Bitcoin experiences minimal direct impact but potential indirect sentiment spillover through broader confidence erosion in altcoin market integrity. Short-term volatility acute, medium-term stabilization expected as worst-case scenarios price in.