Bitget Suffers Over $20M Loss in VOXEL Exploit, Takes Legal Action

The digital asset exchange Bitget has confirmed it is taking legal steps following a significant security incident. The platform reported losses exceeding $20 million due to what it describes as a coordinated manipulation effort targeting its systems.

Exploitation of VOXEL Token Vulnerability

The incident, which unfolded on April 20th, involved the exploitation of a system flaw connected to the VOXEL token. According to Bitget, a group of eight users allegedly worked together professionally to take advantage of this vulnerability. This manipulation led to an extraordinary price increase for VOXEL, which surged by over 200%.

The exploit caused a massive spike in trading activity for the token. VOXEL’s daily trading volume briefly reached nearly $13 billion, momentarily eclipsing the trading volume of Bitcoin on the Bitget platform itself.

Bitget’s Response and Remediation

In reaction to the attack, Bitget moved swiftly to contain the damage. The exchange froze the accounts suspected of involvement in the manipulation. Furthermore, transactions linked directly to the exploit were reversed.

Bitget has publicly committed to returning any recovered funds to the users who were negatively impacted by the incident. This distribution is planned to occur via an airdrop. Importantly, the exchange reassured legitimate traders who dealt with VOXEL during a specific timeframe on April 20th that their withdrawal capabilities would remain unaffected.

While the identities of the individuals allegedly behind the attack have not yet been disclosed, Bitget has stated its intention to provide transparency. The company plans to release a comprehensive report detailing the specifics of the exploit and the steps taken, aiming to restore user confidence in the platform’s security.