Bitget Takes **Decisive** Legal Action Over VOXEL Futures Manipulation Allegations
The world of cryptocurrencies is often unpredictable, and recent events involving the crypto exchange Bitget and the VOXEL token highlight the ongoing battle against illicit trading practices. Bitget has initiated legal proceedings against accounts it alleges were involved in manipulating the price of VOXEL futures contracts, aiming to recover significant gains made from the incident.
Understanding the VOXEL Futures Incident
On April 20, Bitget detected unusual trading activity on its VOXEL/USDT perpetual futures trading pair. This specific contract saw an exceptionally high trading volume, far exceeding its typical activity on other platforms like Binance. The exchange identified eight specific accounts it believes were the primary drivers behind this abnormal price movement.
- The incident occurred on April 20, involving the VOXEL/USDT perpetual futures contract.
- Abnormal trading volume reached over $12 billion.
- Eight accounts are alleged to be the main instigators.
- These accounts allegedly gained more than $20 million improperly.
Bitget CEO Gracy Chen previously stated that the trades in question were between individual market participants and did not involve the platform directly, emphasizing that user funds remained secure despite the market volatility.
Bitget’s Response and Legal Action
Following the detection of the abnormal activity, Bitget took swift action, pausing the suspicious accounts and rolling back the irregular trades to reclaim the improper gains. The exchange is now formalizing its response by sending legal letters to the eight account holders identified.
Xie Jiayin, Bitget’s head of Chinese operations, confirmed the legal action, stating that letters would be sent in quick succession. She clarified that only these eight accounts are being targeted, and other users who traded VOXEL on April 20 and have withdrawn funds do not need to be concerned, with their accounts restored to normal status.
Addressing Market Manipulation Concerns
Market manipulation remains a significant concern in the crypto space. While Bitget is still conducting a full investigation into the cause of the April 20 incident, some speculate it may have been triggered by a bug in a market maker bot, which allowed certain traders to exploit the situation with high-leverage positions.
Bitget plans to distribute 100% of the recovered funds back to affected users through airdrops once the investigation is complete. This action underscores the exchange’s commitment to mitigating the impact of such incidents on its user base.
This event is not isolated. The decentralized exchange Hyperliquid faced a similar situation in March involving the JELLY token, where a whale allegedly exploited liquidation parameters for substantial profit. Hyperliquid subsequently delisted the JELLY perpetual futures contract citing suspicious activity.
What Does This Mean for VOXEL Traders?
For the majority of users who traded VOXEL futures on Bitget around April 20 but were not involved in the alleged manipulation, Bitget’s message is reassuring. The exchange has stated that accounts not among the targeted eight are restored to normal and will not face further action regarding this specific incident.
This legal step taken by a major crypto exchange like Bitget signals a proactive stance against manipulative practices, aiming to protect market integrity and user funds.
Summary
Bitget is taking decisive legal action against eight accounts accused of profiting $20 million through alleged market manipulation of VOXEL futures trading on April 20. The crypto exchange has paused the accounts, rolled back trades, and is sending legal letters to the alleged instigators. While a full investigation is ongoing, Bitget plans to return recovered funds to affected users. This incident highlights the ongoing challenges of maintaining fair markets in the volatile world of cryptocurrencies and Bitget’s commitment to addressing alleged misconduct.
