Nikolas Sargeant
Cryptocurrency exchange Bitget has initiated legal proceedings against eight accounts accused of manipulating VOXEL token trading, allegedly netting over $20 million during a sudden market surge on April 20. The exchange's head of Asia, Jiayin Xie, announced on X that legal notices had been delivered to the accounts, which Bitget believes were operated by a professional arbitrage group. The Seychelles-based exchange plans to distribute any recovered funds to users through an airdrop program.
The incident occurred when VOXEL, the native token of Polygon-based game Voxie Tactics, experienced an unprecedented spike in trading activity. At its peak, VOXEL's trading volume temporarily surpassed that of Bitcoin, raising immediate concerns throughout the crypto community.
Unprecedented Price Volatility Triggers Exchange Investigation
On April 20, VOXEL experienced a dramatic 200% price increase within just 30 minutes on Bitget's platform, reaching $0.1645 before settling at $0.09131—still approximately 40% higher than its previous value. Bitget quickly identified abnormal activity in VOXEL/USDT perpetual futures trading and flagged suspicious volumes and erratic price movements. In response, the exchange promptly suspended the implicated accounts from trading, depositing, and withdrawing funds.
While Bitget maintains that most users remained unaffected by the incident, it has not yet revealed the identities behind the suspicious activity. Furthermore, questions persist about whether internal technical vulnerabilities may have contributed to the situation.
Market Integrity Concerns Emerge Following Trading Anomaly
The cryptocurrency industry has experienced numerous high-profile security breaches in recent years. Bad actors frequently exploit thin liquidity, smart contract vulnerabilities, or flawed trading algorithms, intensifying security concerns across trading platforms.
Some traders have speculated that Bitget's market-making technology may have malfunctioned, though no official explanation has been confirmed. Following the incident, online discussions drew comparisons to casinos suing players for winning, although Bitget insists the accounts engaged in market manipulation rather than legitimate trading practices.
The exchange has committed to publishing a comprehensive report on the VOXEL incident. Meanwhile, the eight targeted accounts remain suspended as legal proceedings continue.
