Bitget has announced legal action against eight accounts accused of manipulating the price of the VOXEL token, an incident that has caused significant disruption to market stability. According to Jiayin Xie, Bitget’s Head of Asia, the exchange plans to send eight legal notices to the individuals suspected of illegally profiting over $20 million during the event.
Xie revealed in an April 27 post on X that any funds recovered through the legal proceedings would be fully redistributed to Bitget platform users through airdrops. The platform aims to ensure that its community members, not the bad actors, benefit from the resolution.
Bitget Addresses Concerns of Affected Users
Xie reassured users that those who traded VOXEL between 16:00 and 16:30 UTC on April 20 and subsequently withdrew their funds would not face penalties. Bitget has restored these accounts and confirmed that it will not seek any further action against them.
Additionally, Xie apologised for the inconvenience caused by the incident and promised a comprehensive report soon. This report will detail the events and outline Bitget’s plans to prevent similar incidents in the future.
How the VOXEL Manipulation Incident Unfolded
On April 20, the price of VOXEL experienced a dramatic 200% surge within just 30 minutes, briefly becoming the highest-traded asset on Bitget by daily volume. The token price spiked from $0.125 to approximately $0.1645, drawing intense attention from traders.
Reports indicated that a bug in Bitget’s market-making bot triggered abnormal trading patterns. This flaw enabled specific traders to bypass standard order book processes, allowing them to secure rapid and profitable trades that deviated from normal market dynamics.
Bitget responded by pausing trading on the VOXEL/USDT pair and freezing several accounts linked to the suspicious activity. To maintain trust and stability, the exchange rolled back irregular trades and promised compensation for users who suffered losses during the disruption.
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Bitget’s Position and Response to Criticism
Bitget emphasised that the VOXEL incident was not caused by an internal failure or external exploitation of the platform. However, the company has not disclosed the identities of the individuals facing legal action.
Following the scandal, critics pointed out perceived inconsistencies in Bitget’s stance compared to its earlier criticism of Hyperliquid. In March, Hyperliquid faced a similar situation involving manipulation of the JELLY token, and Bitget CEO Gracy Chen had criticised their response. After the VOXEL case, some community members accused Chen of hypocrisy.
Looking Ahead: Bitget’s Commitment to Security
Bitget’s decisive legal action reflects its commitment to protecting users and maintaining a fair trading environment. As the exchange prepares to release a comprehensive incident report, it aims to reinforce transparency and rebuild trust among its users.
By addressing the VOXEL manipulation swiftly and offering full compensation, Bitget hopes to set a new standard for accountability in the cryptocurrency exchange industry.
