Bitget Sues Eight Accounts Over $20M VOXEL Manipulation

Crypto exchange
has taken legal action against eight account holders it alleges were involved in manipulating the price of VOXEL token trading. The exchange claims that these accounts profited more than $20 million during the alleged manipulation. Bitget's legal team has sent letters to the account holders, outlining the accusations and the potential legal consequences. The exchange detected a glitch in its trading system that allowed users to exploit narrow price swings, leading to significant profits for some traders.Bitget's head of Chinese operations, Xie
, stated that these eight accounts were the main instigators of the VOXEL incident and had improperly gained more than $20 million from it. She also assured other users who participated in VOXEL trading on April 20 and have withdrawn funds that their accounts have been restored to normal and no responsibility will be pursued in the future.On April 20, Bitget discovered abnormal trading activity on its VOXEL/USDT perpetual futures contract and paused accounts it suspected of market manipulation. The trading pair clocked over $12 billion in volume, which was significantly higher than the metrics of the same contract on other platforms. After the pause, Bitget rolled back the irregular trades to claw back the gains.
At the time, Bitget CEO Gracy Chen insisted that the trades were between individual market participants, not the platform itself, and that the losses were not platform-wide and user funds remained safe. Bitget plans to distribute 100% of the recovered funds to affected users through airdrops while a complete incident report is still in the works.
Some users claimed the incident was caused by a bug in a market maker bot, which caused VOXEL’s excessive volume. Traders who spotted the suspected bug early used high-leverage bets to boost their profits in a zero-cost exploit. VOXEL is the native utility token of Voxies, a free-to-play, 3D turn-based tactical RPG game built on the Ethereum blockchain.
Bitget's actions against the alleged manipulators are a clear indication of its commitment to maintaining the integrity of its trading platform and ensuring a fair and transparent trading environment for all users. The exchange's decision to take legal action and distribute recovered funds to affected users demonstrates its dedication to protecting its users and preventing similar incidents in the future.

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