Cryptocurrency exchange Bitget has initiated legal action following allegations of market manipulation involving gaming tokens, which could result in $20 million in losses.
Details on the Manipulation
Bitget reported "abnormal trading activities" involving multiple gaming tokens, resulting in estimated losses of approximately $20 million. The exchange refrained from disclosing the identities of those involved but stated it is actively working with law enforcement and blockchain analytics firms to identify the perpetrators.
Bitget's Response to the Situation
The exchange has suspended trading for the affected tokens and frozen accounts suspected of involvement in the manipulation. Bitget emphasized its commitment to protecting customer assets and maintaining market integrity, assuring that users will receive updates as the investigation progresses.
Market Manipulation Concerns
The incident raised concerns about the vulnerability of smaller-cap tokens to price manipulation on centralized exchanges. A Bitget spokesperson stated, "We are committed to upholding market fairness and will continue to cooperate with authorities to hold bad actors accountable."
The incident involving Bitget highlights significant risks associated with manipulation in the cryptocurrency market and the need for stricter measures to protect investors.
