Bitget Initiates Legal Action for $20M VOXEL Manipulation

Bitget has filed lawsuits against eight accounts connected to a $20 million manipulation scheme of the VOXEL token, according to an April 27, 2025 announcement.

The incident raises concerns over exchange security and manipulation in trading volatile tokens like VOXEL, with no notable effect on broader markets.

Bitget Sues Eight Accounts Over $20M VOXEL Fraud

Bitget, a leading cryptocurrency exchange, has initiated litigation against eight accounts accused of manipulating the VOXEL token. This scheme reportedly resulted in illicit gains exceeding $20 million.

This market manipulation led Gracy Chen, Bitget CEO, to emphasize that the platform and users’ funds were not compromised. Bitget’s investigation remains focused on legal recourse.

Centralized Exchange Security Under Scrutiny

This action has drawn attention to security measures on centralized exchanges. Bitget assured affected users by pledging to redistribute seized funds through an airdrop.

Financially, this incident highlights the risk of manipulation in less-liquid assets. There were no material impacts on Ethereum or Bitcoin, despite the high volume recorded.

Regulatory Focus on Manipulation in Gaming Tokens

Similar events have shown manipulation risks in tokens associated with gaming or metaverse projects, indicating regulatory vulnerabilities in such volatile markets.

Data suggests these manipulation attempts may trigger tighter controls and greater regulatory scrutiny in the cryptocurrency industry, especially on centralized exchanges handling small-cap tokens.

Gracy Chen, CEO, Bitget, stated, “The trades were conducted solely between individual market participants, stressing that the platform itself was not compromised and that user funds remained secure.”