Bitget to pursue legal action against 8 users who profited over $20M from VOXEL trading fiasco

Crypto exchange Bitget has announced it will pursue legal action against eight users accused of profiting over $20 million from a trading glitch involving the VOXEL token.

On April 27, Bitget’s executive Xie Jiayin stated that the individuals were part of a coordinated “wool-pulling interest group” that took advantage of a system vulnerability..

He wrote:

“Bitget will issue 8 lawyer’s letters in succession. These 8 accounts are suspected to be part of a related professional wool-pulling interest group, which is the main instigator of this VOXEL incident and improperly profited over 20 million USD from it.”

Bitget did not provide further information about the group or the individuals.

On April 20, VOXEL, a lesser-known gaming token, saw its price surge by more than 200% after a technical fault disrupted trading operations on Bitget. This unexpected event drove the VOXEL/USDT contract’s daily trading volume to nearly $13 billion, eclipsing Bitcoin’s volume on the exchange for the same day.

Industry experts noted that the trading glitch allowed some traders to earn massive profits using small investments of under $100.

Following the incident, Bitget said it detected irregular trading behavior and temporarily froze affected accounts. The exchange later reversed the abnormal transactions in an effort to recover the illicit gains.

Compensation plans

Bitget has promised that all funds recovered from the incident will be fully redistributed to impacted users through an airdrop program.

Jiayin said:

“The recovered funds will be 100% distributed to platform users in the form of airdrops by Bitget.”

Furthermore, the platform reassured its community that users who legitimately traded VOXEL between 16:00 and 16:30 UTC on April 20 and withdrew their funds would not be penalized.

Looking ahead, Bitget plans to publish a comprehensive report detailing the incident. The report aims to provide transparency and reinforce trust with its community.

Meanwhile, the drama surrounding VOXEL made it one of the best-performing gaming tokens last week, according to data compiled by Web3 Games Daily. According to CryptoSlate’s data, the digital asset is down 2% to 0.07 as of press time.

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