Cryptocurrency platform Bitget initiates lawsuits following a $20M manipulation incident involving VOXEL Futures.
Headline: Crypto Exchange Bitget Sues Eight Accounts Over VOXEL Token Manipulation, Vows to Compensate Affected Users
Subhead: The market-making bot's glitch is blamed for a 200% price spike; a comprehensive report on the incident is forthcoming
Hear ye, hear ye! Crypto exchange Bitget is taking legal action against eight shady accounts accused of manipulating the VOXEL token. This unsavory business triggered a sharp price spike and over $20 million in ill-gotten gains. Fear not, dear users, Bitget has vowed to return any recovered funds to those impacted by the market volatility, in a bid to restore trust.
Jiayin Xie, Bitget's Head of Asia, confirmed on the 27th of April that legal notices were served to the accused. Rest easy, valued traders who were initially frozen out, your accounts have been reinstated, and Bitget will not take further punitive action against you.
The Lowdown on Market Manipulation
The manipulation went down like a greased pole, with VOXEL soaring over 200% within 30 minutes, making it Bitget's most traded asset for a spell. The price, which started at $0.125, shot up to $0.1645, thanks to suspicious trades that circumvented the regular order book.
Bitget attributes this spike to a suspected flaw in its market-making bot. This bot, you see, caused orders to execute far quicker than usual, setting the stage for manipulation. In response, trading was halted, accounts were frozen, and Bitget announced plans to undo trades affected by the situation.
Transparency, Backlash, and the Big Picture
Bitget insists that the issue was neither an internal failure nor an external hack. However, the exchange has remained tight-lipped about the identities of those involved, with a comprehensive incident report due soon. Until then, Bitget is taking heat from critics charging the exchange with inconsistent policies.
Previously, CEO Gracy Chen had slammed Hyperliquid for its handling of a similar incident involving the JELLY token. Now that Bitget is under the microscope, it's adding fuel to ongoing concerns about crypto exchange reliability and the risks posed by automated trading systems.
Key Insights:
- The market manipulation saw eight accounts raking in over $20 million through suspicious trading of the VOXEL token.
- The manipulation took place on April 20, 2025, when VOXEL/USDT perpetual futures trading volume skyrocketed, surpassing Bitcoin’s volume on the platform.
- The incident was caused by a technical glitch in Bitget’s market-making bot, which allowed trades to bypass standard price safeguards, triggering rapid price fluctuations.
- Bitget plans to distribute recovered funds to affected users via air drops, after completing legal proceedings. The exchange will roll back trades executed between 8:00–8:30 UTC on April 20 and has restored accounts of users who withdrew funds during this period without penalties.
- An 80,000 VOXEL transfer from a wallet reportedly linked to Bybit preceded the price surge, raising insider trading concerns.
- Bitget's handling of the incident echoes similar controversies like Hyperliquid’s JELLY token manipulation in March 2025.
- Bitget, the crypto exchange, has taken legal action against eight accounts accused of manipulating the VOXEL token, with the goal of recuperating over $20 million in illicit gains.
- Despite the incident, Bitget has vowed to return any recovered funds to impacted users as a means of restoring trust among its customer base.
- On April 20, 2025, the manipulation led to the VOXEL token's price spiking over 200% within 30 minutes, becoming Bitget's most traded asset at the time.
- The sudden price surge was attributed to a suspected flaw in Bitget's market-making bot, which caused orders to execute far quicker than usual, facilitating manipulation.
- In response, Bitget has promised to reverse trades affected by the situation, as well as restore accounts of users who withdrew funds during the incident period without penalties.
- In addition to this, Bitget has faced scrutiny for its handling of the situation, with critics alleging inconsistent policies and insider trading concerns, particularly following a similar controversy involving Hyperliquid and the JELLY token.
- The exchange is currently working on a comprehensive report due soon, which will shed light on the identities of those involved in the manipulation and the precise nature of the technical glitch that triggered the incident.
