Bitget to Pursue Legal Action Against Eight Accounts Over $20M VOXEL Trading Manipulation
Global cryptocurrency exchange Bitget has announced plans to take legal action against eight accounts suspected of manipulating trades involving the VOXEL token, resulting in illicit profits estimated at $20 million. This move comes as part of Bitget’s broader investigation into abnormal trading activity detected last Sunday.
The incident revolves around VOXEL, the native token of Voxie Tactics, a Polygon-based role-playing game (RPG). On April 20, Bitget witnessed an unprecedented surge in VOXEL's market activity, with its price skyrocketing more than 500% compared to just two days earlier. In response, Bitget immediately suspended trades within the affected time window and initiated an in-depth review.
Although a full incident report is still pending, Bitget’s Head of Asia, Xie Jiayin, confirmed via a post on X (formerly Twitter) that the platform will issue formal legal notices — commonly known as lawyer's letters — to the eight implicated accounts. These accounts are alleged to have operated as a coordinated "professional arbitrage" group, manipulating market conditions to their advantage.
“All recovered funds will be returned 100% to affected users via an airdrop,” Xie assured, according to an English translation of the announcement. Bitget emphasized its commitment to transparency, promising to release a detailed report on the incident in the near future.
This case adds to a recent series of security breaches and exploits in the cryptocurrency sector. In the past few weeks alone, the Solana-based DeFi platform Loopscale suffered a $5.8 million exploit shortly after launch, while Infini, a stablecoin neobank project, reported losses of approximately $49 million due to vulnerabilities.
Bitget’s proactive legal strategy signals a firm stance against market manipulation, aiming to reinforce trust and stability within its trading ecosystem — critical factors for the broader credibility of the cryptocurrency industry.