Crypto exchange Bitget has launched legal action against eight accounts it accuses of manipulating VOXEL token trading and profiting over $20m during a sudden market surge on April 20.
The company’s head of Asia, Jiayin Xie, said on X that legal letters had been sent to the accounts, which it believes were operated by a professional arbitrage group. Bitget, which is headquartered in Victoria, Seychelles, said it plans to return any recovered funds to users through an airdrop.
The incident unfolded when VOXEL, the token associated with the Polygon-based game Voxie Tactics, saw an extraordinary spike in trading volume last week. At one point, VOXEL’s trading volume briefly exceeded that of Bitcoin.
VOXEL’s Sudden Spike Prompts Bitget to Investigate Trading Irregularities
On April 20, VOXEL surged by more than 200% in just 30 minutes on Bitget, climbing to $0.1645 before retreating to $0.09131, still around 40% higher than its earlier price.
Bitget flagged the abnormal activity in VOXEL/USDT perpetual futures trading shortly after it occurred. Soon after, the exchange noted suspicious volumes and wild price swings. As a result, it moved quickly to suspend certain accounts from trading, depositing, and withdrawing.
Although Bitget claims that most users were not affected, it has yet to disclose who was behind the activity. Moreover, it remains unclear whether internal technical flaws contributed to the situation.
Traders Question Bitget’s Systems After VOXEL Trading Turmoil
The crypto sector has witnessed several high-profile exploits in recent years. Hackers and market manipulators have often exploited weak liquidity, smart contract bugs or flawed trading algorithms. As a result, security concerns across exchanges have continued to grow.
In Bitget’s case, some traders have suggested that the platform’s market-making technology may have malfunctioned. However, no official explanation has been confirmed yet.
Following the incident, comparisons quickly surfaced online. Some users likened Bitget’s actions to casinos suing players for winning. Nevertheless, Bitget maintains that the accounts in question engaged in manipulation, not legitimate trading.
The exchange said it will publish a full report on the VOXEL incident soon. Meanwhile, the eight targeted accounts remain suspended as legal proceedings move forward.
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