Bitget Takes Decisive Action Against Alleged VOXEL Manipulation
In a significant development within the cryptocurrency market, Bitget, a prominent crypto exchange, has taken a firm stance against alleged manipulation of the VOXEL token. The exchange has announced its intention to pursue legal action against eight accounts implicated in a sophisticated scheme that reportedly netted $20 million through illicit trading activities. This move comes in the wake of an “abnormal trading activity” incident that occurred on April 20, 2025, which has since been under intense scrutiny.
Details of the Incident
The incident in question saw an unprecedented spike in VOXEL’s trading volume, which surged over 200% to $12.7 billion, surpassing even Bitcoin’s volume on the platform. This anomaly was attributed to a glitch in Bitget’s trading system, which allowed users to exploit narrow price swings, turning modest investments into substantial profits within minutes. Bitget has identified eight key accounts as being central to this manipulation, which involved the trading of perpetual futures contracts tied to the VOXEL token.
Legal and Financial Repercussions
In response to these findings, Bitget has initiated legal proceedings against the accused accounts. The exchange’s legal team is set to send letters to these account holders, signaling the commencement of formal legal action. Bitget’s representative, Jiayin Xie, has described the group involved as a “professional arbitrage group,” underscoring the calculated nature of the manipulation.
Commitment to User Reimbursement
In addition to legal action, Bitget has committed to reimbursing affected users. The exchange plans to establish a $20 million recovery fund to compensate traders who suffered losses due to the trading glitch. This commitment reflects Bitget’s dedication to maintaining trust and integrity within its platform, ensuring that users are protected against such malpractices.
Market Impact and Future Outlook
As of April 28, 2025, the VOXEL token is trading at $0.0722889, significantly below its 52-week high of $0.303566 recorded on June 5, 2024. The market capitalization stands at approximately $18.13 million. The recent events have undoubtedly impacted investor confidence, but Bitget’s proactive measures may help restore stability and trust in the market.
Looking ahead, the cryptocurrency community will be closely monitoring Bitget’s actions and the outcomes of the legal proceedings. This incident serves as a reminder of the vulnerabilities within digital asset markets and the importance of robust regulatory frameworks to safeguard against manipulation and fraud.