Bitget Fights Back: Pursues Legal Action Over $20M VOXEL Trading Exploit
- Bitget takes legal action against eight accounts over VOXEL loss.
- Platform promises full recovery of funds through airdrops.
- Users involved in normal trades are unaffected by market manipulation.
Bitget has initiated legal action against eight accounts that participated in the market manipulation of VOXEL/USDT which resulted in a $20 million loss. The platform has launched efforts to recover the funds. The exchange announced that all recovered funds will be distributed as airdrops to affected users.
On April 20, the price of VOXEL, the native token for the Voxie Tactics game, saw a sudden increase of more than 500%. The price surge was allegedly linked to irregular trading incidents between 16:00 UTC and 16:30 UTC. Bitget acted fast , reversed all affected trades and initiated a probe to discover what caused the market disruption.
Bitgets Update on VOXEL Exploit
The exchange identified eight accounts as suspected perpetrators behind professional market manipulation schemes. Bitgets Head of Asia, Jiayin Xie announced that the platform has initiated the issuance of lawyers letters to these accounts. The legal process seeks to recover the stolen funds and distribute them to affected users.
Bitget stated that all users who conducted normal trading during the market manipulation will not be penalized. These customers recovered full access to their accounts and are not liable to any consequences over the exploit. The exchange has promised to maintain transparency and publish comprehensive details about the event.
Cause of VOXEL Exploit
The market manipulation was caused by a trading system malfunction which led to abnormal trading patterns. A bot failure triggered a series of automatic trades within a small price range which generated massive profits for users who invested minimal funds. Bitget continues to resolve system vulnerabilities to avoid similar exploits in future.
A section of Bitget users have expressed concerns about the exchanges decision to rollback trades and institute legal actions. Additionally, some users have called for better internal control measures. This complicates the exchanges situation between balancing user trust and conducting corrective actions.
Bitget has implemented measures to address fundamental issues that caused the system failure. The platform continues to conduct regular system upgrades to prevent similar issues in future. The exchange has promised to maintain transparent investigations and issue timely updates to users.
Read more: https://www.tronweekly.com/bitget-takes-legal-action-against-voxel-traders/
Text source: TronWeekly
