Bitget Initiates Legal Action Over $20M VOXEL Manipulation Incident

Bitget, a major crypto exchange, is taking legal steps against eight accounts accused of manipulating VOXEL trades, resulting in a reported $20 million impact. The exchange confirmed that user assets remain secure, backed by a $300 million compensation fund, and has suspended the involved accounts. This action follows a temporary VOXEL price spike and raises concerns about the dangers of trading low-liquidity assets. Comparisons have been drawn with past events involving Mango Markets and FTX, illustrating how manipulation and inadequate risk controls can lead to market instability. The case has sparked discussions on the need for greater transparency and enhanced risk management practices in the industry, potentially paving the way for stricter regulations.