Crypto exchange Bitget has taken a stand against a group of eight users accused of exploiting a trading glitch involving the VOXEL token, resulting in profits exceeding $20 million. The exchange’s executive, Xie Jiayin, labeled the group as a coordinated “wool-pulling interest group” that capitalized on a system vulnerability.
In a statement on April 27, Xie Jiayin declared that Bitget would pursue legal action against the individuals involved. The exchange plans to issue lawyer’s letters to the accounts suspected of being part of the group responsible for orchestrating the VOXEL incident and illicitly profiting from it.
The sudden surge in the price of the VOXEL token, a relatively obscure gaming token, occurred on April 20 due to a technical fault that disrupted trading operations on Bitget. This anomaly saw the daily trading volume of the VOXEL/USDT contract skyrocket to nearly $13 billion, overshadowing Bitcoin’s volume on the exchange for that day.
Experts in the industry observed that the trading glitch enabled certain traders to generate significant profits with minimal investments of less than $100. Following the incident, Bitget identified irregular trading patterns and temporarily froze the affected accounts. Subsequently, the exchange reversed the abnormal transactions in an attempt to recover the unlawful gains.
Bitget has pledged to redistribute all funds recuperated from the incident through an airdrop program to impacted users. Xie Jiayin confirmed that the recovered funds would be distributed in full to platform users as part of the compensation plan.
Moreover, Bitget assured users who legitimately traded VOXEL between 16:00 and 16:30 UTC on April 20 and withdrew their funds that they would not face any penalties. The exchange intends to release a detailed report outlining the incident to enhance transparency and rebuild trust within the community.
Despite the controversy surrounding VOXEL, the gaming token emerged as one of the top-performing assets in the gaming sector last week, according to data compiled by Web3 Games Daily. As of the latest data from CryptoSlate, the digital asset is currently valued at 0.07, reflecting a 2% decline.
In conclusion, Bitget’s proactive measures to address the trading glitch involving the VOXEL token underscore its commitment to upholding integrity and safeguarding the interests of its user base. The exchange’s swift response and compensation plans aim to rectify the situation and restore confidence among its community members.