Crypto exchange Bitget has initiated legal action against eight account holders suspected of manipulating the price of VOXEL perpetual futures contracts, reportedly profiting $20 million from their actions on April 20. Bitget's head of Chinese operations indicated that these accounts were the main instigators of the incident, with their lawyers sending warning letters shortly. The exchange halted trades and paused accounts exhibiting abnormal activity during the incident, later rolling back the irregular trades to recover gains. Bitget's CEO clarified that the trades occurred between individual participants and that user funds remain secure. The exchange plans to return 100% of the recovered funds, while still investigating the incident, which involved a high-volume exploit tied to a market-making bot. The ongoing scrutiny follows a similar incident at decentralized exchange Hyperliquid where a whale exploited liquidation parameters. This highlights mounting concerns about manipulative trading practices in cryptocurrency markets.

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