Crypto exchange Bitget has recently announced its decision to take legal action against eight users who allegedly profited over $20 million from a trading glitch involving the VOXEL token.
Xie Jiayin, an executive at Bitget, revealed on April 27 that these individuals were part of a coordinated group that exploited a system vulnerability for personal gain. In a tweet, he stated:
“Bitget will be sending out 8 lawyer’s letters in succession. These 8 accounts are suspected to be part of a related professional group that profited improperly over $20 million from the VOXEL incident.”
No further details were provided about the group or the individuals involved.
The incident occurred on April 20 when the price of VOXEL, a lesser-known gaming token, skyrocketed by more than 200% due to a technical fault on Bitget’s platform. This disruption led to a surge in the token’s daily trading volume, surpassing that of Bitcoin on the exchange for the same day.
Experts noted that the glitch allowed some traders to make significant profits with minimal investments of less than $100.
Following the incident, Bitget identified unusual trading patterns and temporarily suspended the affected accounts. The exchange later reversed the unauthorized transactions in an attempt to recover the illicit gains.
Compensation Plan
Bitget has assured that all funds recovered from the incident will be redistributed to affected users through an airdrop program.
Jiayin mentioned:
“The recovered funds will be fully distributed to platform users in the form of airdrops by Bitget.”
Additionally, Bitget stated that users who legitimately traded VOXEL during the affected period and withdrew their funds would not face any penalties.
Looking ahead, Bitget plans to release a detailed report on the incident to enhance transparency and rebuild trust within its community.
Despite the controversy surrounding VOXEL, it emerged as one of the top-performing gaming tokens last week, according to data from Web3 Games Daily. As of now, the digital asset is trading at 0.07, a 2% decrease based on CryptoSlate’s data.
