Bitget Pursues Legal Action After $20M VOXEL Futures Manipulation Scandal
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Crypto exchange Bitget is taking legal action against eight accounts accused of manipulating the VOXEL token, raising concerns about transparency and crypto exchange reliability. The incident triggered a sharp price spike and over $20 million in improper gains.The $20 Million Question: Bitget's Response to VOXEL Token Manipulation
Bitget has pledged to return any recovered funds to users impacted by the volatility, in an attempt to restore trust after the suspicious trading activity. Jiayin Xie, Bitget’s Head of Asia, confirmed on the 27th of April that legal notices were issued to the suspected accounts.
The manipulation occurred swiftly, with VOXEL surging over 200% within just 30 minutes, briefly becoming Bitget’s most traded asset. Its price rose from $0.125 to $0.1645, fueled by trades that bypassed the regular order book.A Flaw in the System: What Happened During the VOXEL Spike
Bitget has attributed the spike to a suspected flaw in its market-making bot. This bot caused orders to execute unusually quickly, creating an opportunity for manipulation. In response, trading was paused, several accounts were frozen, and Bitget announced plans to roll back affected trades.
Bitget maintains that the issue was neither the result of an internal failure nor an external hack. However, the exchange has not yet disclosed the identities of those involved, with a full incident report expected soon.A Response from Bitget: Transparency and Accountability
In the meantime, Bitget is facing growing backlash. Critics have highlighted previous remarks by CEO Gracy Chen, who had criticized Hyperliquid’s handling of a similar incident involving the JELLY token. Now, with Bitget under scrutiny, the situation has reignited broader concerns about crypto exchange reliability and the risks of automated trading systems.