Crypto exchange Bitget said it will reverse a number of trades and compensate affected users following an episode of abnormal activity in its perpetual futures market involving a relatively obscure digital token.
The incident, which unfolded early Sunday, involved VOXEL, a token tied to the Polygon-based role-playing game Voxie Tactics.
The token’s trading volume briefly surpassed that of Bitcoin, the largest and most liquid cryptocurrency. VOXEL, currently ranked 723rd by market capitalization according to CoinMarketCap, has surged more than 300% over the past week.
Bitget Cites Market Manipulation Risk in Decision to Lock Certain Accounts
The dramatic spike raised concerns within Bitget, triggering an internal investigation. The platform determined that certain accounts may have attempted to manipulate the market, leading to sudden and extreme price movements in VOXEL futures contracts.
In response, Bitget suspended trading, deposits and withdrawals for the flagged accounts. It added that all other users remain unaffected and user funds are secure.
“Upon investigation, certain accounts were found to have potentially engaged in market manipulation, triggering our risk control system,” Bitget said in a statement issued on April 20.
Low-Profile Gaming Token’s Surge Raises Questions Over Market Stability
Bitget’s team is currently working to unwind trades linked to the anomaly. It will also compensate users affected by the incident. The company has not disclosed the total value of impacted trades or provided a timeline for full resolution.
VOXEL is not widely traded but has recently drawn attention due to its connection with Voxie Tactics. The game is a blockchain-based tactical RPG that lets players earn crypto rewards. Despite this, the sudden surge in futures activity appears disproportionate to the token’s usual market presence.
The incident shows the risks of trading lightly regulated or low-liquidity digital assets on leveraged products such as perpetual futures. It also points to the pressure on centralized exchanges to maintain fair trading environments while safeguarding user interests.
The post Bitget Responds to Abnormal Token Trading With Rollbacks and Refunds appeared first on Cryptonews.
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