In a bold move shaking the crypto world, Bitget announced legal action against eight accounts accused of manipulating the VOXEL token, pocketing over $20 million in ill-gotten gains.
The exchange vows to recover funds and compensate users, sparking debates over market integrity and technical vulnerabilities. Here’s how the drama unfolded and what it means for traders.
The 30-Minute Frenzy
On April 20, 2025, chaos erupted as VOXEL’s price skyrocketed 200% in just half an hour, briefly dethroning Bitcoin as Bitget’s top-traded asset. Prices swung wildly from $0.125 to $0.1645, with trades bypassing standard order books.
Analysts later traced the surge to a suspected glitch in Bitget’s market-making bot, which enabled instant order fills. Opportunistic traders exploited the flaw, triggering rapid volatility and raking in massive profits before the exchange froze accounts.
Bitget Targets “Professional Arbitrage Group”
Bitget’s Asia head, Jiayin Xie, revealed plans to issue legal letters to eight accounts tied to the manipulation. “We’re committed to reclaiming every dollar,” Xie stated, promising 100% of recovered funds would go to users via airdrops.
Furthermore, CEO Gracy Chen assured traders that withdrawn funds during the incident would face no penalties, restoring affected accounts to normal. Critics, however, question whether Bitget’s hybrid custody model invited exploitation by lacking position limits.
Bot Glitch or Insider Failure?
While Bitget denies internal failures, evidence points to a malfunctioning trading bot. Crypto analyst Dylan noted the bot executed trades between $0.125 and $0.138, letting users profit with minimal capital.
The exchange paused VOXEL/USDT trading, rolled back irregular transactions, and launched a probe. A post-mortem report is pending, but experts argue the incident underscores systemic risks in centralised platforms. “Exchanges can’t afford technical oversights,” one trader tweeted, demanding stricter safeguards.
Will Airdrops Restore Trust?
Bitget moved swiftly to contain fallout, tapping its $300 million protection fund to offset losses. Users trading VOXEL between 4:00 and 4:30 PM on April 20 received assurances their accounts were safe.
However, skepticism lingers. “Why sue traders for exploiting your own bug?” asked a Reddit thread, comparing Bitget to “casinos suing gamblers.” Despite backlash, the exchange insists its compensation strategy, including future airdrops, will prioritise fairness. VOXEL’s price has since stabilised at $0.074, down 47% from its peak.
Hypocrisy Claims Hit Bitget CEO
The scandal drew parallels to Hyperliquid’s March 2025 JELLY token debacle, where a trader netted $6.26 million via a platform bug. Bitget’s Chen had slammed Hyperliquid’s response as “unprofessional,” but now faces accusations of hypocrisy.
“You can’t criticise others while your own house burns,” tweeted an industry watcher. Meanwhile, Binance’s recent expulsion of manipulative market makers hints at a sector-wide reckoning. Analysts warn such incidents could accelerate regulatory crackdowns, reshaping crypto trading norms.
Will Crypto Exchanges Face Tighter Rules?
The VOXEL saga has reignited calls for stricter oversight. Critics argue exchanges like Bitget wield too much control, risking “FTX 2.0”-style collapses. While Bitget’s user base swells past 100 million, the incident exposes vulnerabilities in rapid growth.
As investigations continue, Bitget’s clash with manipulators shows crypto’s growing pains. While traders await compensation, the broader lesson is clear: In the race for dominance, exchanges must prioritise transparency or risk becoming cautionary tales.
