Crypto exchange Bitget has filed legal action against eight trading accounts allegedly involved in manipulating the price of VOXEL tokens, leading to over $20 million in damages.
In a statement released today, Bitget said it uncovered a coordinated effort by the accounts to artificially inflate the market for VOXEL, the native token of the gaming platform Voxies. The exchange claims that these traders engaged in fraudulent practices, including wash trading and coordinated pump-and-dump schemes, designed to deceive other investors and destabilize the platform’s trading environment.
“Market integrity is critical to maintaining the trust of our users,” a Bitget spokesperson said. “We will take decisive action against any actors who attempt to manipulate token prices or otherwise undermine a fair trading environment.”
According to internal investigations, the suspicious activity spanned several weeks, during which the implicated accounts rapidly bought and sold large quantities of VOXEL to generate false trading volumes and distort price signals. Bitget emphasized that its advanced surveillance systems detected these irregular trading patterns early, prompting a comprehensive review and the initiation of legal action.
While Bitget has not publicly disclosed the identities of the individuals or entities behind the accounts, citing ongoing investigations and legal sensitivities, the exchange confirmed that it has frozen the affected accounts to prevent any further manipulation. Moreover, Bitget is cooperating with relevant law enforcement agencies to pursue further action.
The unusually high volatility of VOXEL’s price during the period in question has drawn attention within the crypto community, with traders and analysts noting unusually high spikes in volume and rapid price swings. Today’s announcement provides confirmation that at least some of that volatility may have been driven by illegal activity.
This move by Bitget showcases the increasing efforts by centralized exchanges to police market behavior more aggressively as regulatory scrutiny of the cryptocurrency sector intensifies globally. Many exchanges are now investing heavily in advanced compliance and monitoring technology to detect and deter market manipulation.
The lawsuit serves as a stark warning to traders that engaging in manipulative practices will not be tolerated and that exchanges are willing to use legal avenues to enforce accountability for unlawful market activity.
Bitget stated that it will continue to update the public as the case progresses, reaffirming its commitment to transparency and investor protection in all its endeavors.
