Bitget, a Singapore-based cryptocurrency trading platform and exchange, has taken legal action against eight accounts that allegedly manipulated the VOXEL token for a whopping $20 million in profits. The exchange has taken this initiative after alleged account manipulation resulted in a rise in the $VOXEL token price, leading to fluctuations in the market.
The head of exchange, Jiayin Xie, has stated that these accounts have allegedly made over $20 million through suspicious trading. The firm has planned to sue these individuals and to distribute the recovered money back to its users via airdrops.
As per the reports, the issue stemmed from a glitch in the firm’s market-making bot, which caused rapid price swings and allowed some traders to profit unfairly. Trades during the incident, around April 20, bypassed normal processes, with the token priced at about $0.1645.
The firm has paused the token trading; the firm has further frozen suspect accounts and promised to reverse irregular trades and compensate affected users. They clarified that users who traded VOXEL token between 4:00 and 4:30 PM on 20th April and withdrew funds won’t face penalties, and their accounts are restored.
Bitget insists the issue wasn’t an internal failure or hack but hasn’t named the culprits. A similar incident happened in March with the JELLY token on another platform, Hyperliquid. Bitget’s CEO, Gracy Chen, criticized Hyperliquid’s handling of that situation, but now some critics are calling her hypocritical for Bitget’s own issues.
Also Read: Bitget Bot Glitch Suspected as VOXEL Surges Bitcoin Volume
