Bitget has started a $100 million Asia Web3 fund at a time when users are "exposing" the exchange as a scam.
The fund will target Web3 startups in Asian countries to build a wider industry framework in the region.
In a statement, Bitget managing director Gracy Chen said the exchange has been supporting Web3 projects despite the bear run.
"The launch of Bitget Web3 Fund is a continuation of our ongoing efforts to drive the adoption of crypto and Web3, reflecting our ‘Go beyond derivative’ strategy in 2023,” Chen said.
Another spokeswoman said Bitget is self-fund, debt-free with an "adequate cash flow" due to its "steady development and fast-growing business."
Earlier this month, Bitget received $10 million in funding from Dragonfly Capital. The VC described the injection as a "strategic investment" to support Bitget's ongoing expansion.
Read more: Dragonfly Hones in on Bitget With $10M Investment
Funds will also go towards Bitget's CSR initiatives to boost crypto education and adoption.
Bitget, based in Seychelles, says it is the world's fifth-biggest derivatives exchange and the world’s largest cryptocurrency derivatives copy trade platform with over 80,000 traders and 380,000 users following their trades.
This year, Bitget plans to double down on spot trading, launchpad and earning products.
Chinese scammers
Bitget users have rallied around the hashtag #BitgetExposed on Twitter to express their animosity towards the exchange.
Crypto personality @EvanLuthra, a well-known whale in the Crypto Twitter industry, shared how he lost $200,000+ on the exchange.
According to Evan, he moved $200,000 worth of $REELT and $MOVR in Bitget when the exchange froze and stole the funds.
Some 300 other users also informed Evan of similar experiences. "Not only me, but more than 300+ people have complained to me about this scam. They are also not able to withdraw their funds. And also aren't getting any response from the team," he tweeted.
Another tweeter using the hashtag simply wrote, "This Bitget Exchange doing everything scam [sic]. This is unfair i almost lost all my money"
Evan slammed the exchange as "Chinese scammers operating from a fake shell company in Africa."
"Bitget's terms of service clearly outline, any funds on their platform are their funds, not of the users. So, they can legally freeze and take your funds," he explained.
Journalist Versha Singh also warned how Bitget operates through a shell company. "The exchange has no known founder and operates from a fake shell company. Do thorough research before using any exchange," he tweeted.
Even Binance CEO Changpeng Zhao weighed in, advising that Evan should talk to Bitget.
Evan has since responded to the news of Bitget's $100 million Web3 fund, stating "Just to cover up their scam @bitgetglobal has come up with a ponzi $100M funding," he tweeted. "But people already know the truth. You all can't fool the community."
