Gotbit? Never listen! Meme coins try to distance themselves

Days later, the US government announced In the wake of unprecedented criminal and civil charges against four crypto companies for market manipulation and “wash trading,” meme coin projects dependent on those companies have begun trying to distance themselves from the collapse.

In particular, token groups that have partnered with market maker Gotbit have begun issuing strong statements about the firm they rely on for liquidity.

“We have severed our relationship with Gotbit, our market creator partner,” Ethereum Meme Coin Project said. Neuro It was posted on Twitter Friday. “None of the matters involving Gotbit or its employees involve or are related to Nero.”

Members of the crypto community were not quick to accept Nero's assertions. The fake sleuth on the chain ZachXBTFor example, after Neuron was removed from its partnership with Gotbit before the lawsuit was filed this week, even though the threat to the market maker has been public knowledge for more than a year.

Other meme coin projects jumped on the bandwagon on Friday to make it clear that they no longer want to be associated with Gotbit — even though the self-described hedge fund and meme coin market maker still maintains significant control over their tokens.

“Unfortunately, Gotbit still holds many of our offerings, including market, treasury, and team tokens, and currently refuses to return them. Tron Mem Coin admitted in a post intended to announce that BMS has severed ties with the company.

Even meme coins that said they stopped working with Gotbit before this week emphasized their condemnation of the company's actions.

The US Department of Justice (DOJ) has accused Gotbit of committing illegal acts. Wash trade with digital tokens to artificially increase the value of tokensBefore selling the tokens in “pump and dump” schemes. The US Securities and Exchange Commission (SEC) further sued Gotbit. It offers “on-demand market manipulation” that generates “fake and daily trading volume, often in the millions of dollars, by trading crypto-assets against itself.”

Those allegations may have surprised some. In the year In 2019, Gotbit co-founder Alexey Andriun spoke out. CoinDesk In detail about the company's business model: rigging crypto markets with fees, to increase the legitimacy of obscure tokens.

“The business is completely unethical,” Andreunin said at the time.

Edited by Andrew Hayward.