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Cryptocurrency exchange Bitget is escalating its response to alleged market manipulation of its VOXEL perpetual futures contract, announcing it will issue legal letters to eight account holders accused of illicitly profiting approximately $20 million. Xie Jiayin, Bitget’s head of Chinese operations, revealed the impending legal action in an X post on April 27, stating that these individuals were the “main instigators” of the incident that occurred on April 20.
看到有社区在讨论BG发出的律师函，我核实后，想跟大家澄清几个细节：
— 谢家印 (@xiejiayinBitget) April 27, 2025
1、Bitget 将陆续发出8份律师函。
2、这8个账户疑似相关联的专业羊毛利益集团，是导致本次VOXEL事件的主要始作俑者，并从中不当得利超过2000万美金。
3、追回的资金，Bitget 将100% 以空投形式发放给平台用户！…
The exchange had previously detected “abnormal trading activity” on the VOXEL/USDT perpetual futures pair, leading to the suspension of accounts suspected of market manipulation. Notably, the trading volume for this pair on Bitget had surged to over $12 billion, significantly exceeding figures on other major exchanges like Binance. Following the detection of the irregularities, Bitget rolled back the suspicious trades in an effort to recover the gains.
Jiayin clarified that the legal pursuit would be limited to these eight primary accounts. “Except for these eight accounts, all other users who participated in VOXEL trading on April 20 and have withdrawn funds do not need to worry,” she assured. “The accounts have been restored to normal and no responsibility will be pursued in the future.”
Bitget CEO Gracy Chen had earlier indicated that the irregular trading activity involved individual market participants rather than the platform itself, emphasizing that user funds remained secure and the losses were not platform-wide.
The exchange is reportedly in the process of compiling a comprehensive incident report and intends to distribute 100% of the recovered funds to affected users via airdrops. While Bitget has not explicitly detailed the nature of the manipulation, some speculation on X suggests the incident may have been triggered by a bug in a market maker bot, leading to excessive VOXEL trading volume. Savvy traders who identified the potential exploit allegedly leveraged high-risk bets to capitalize on the situation.
Also Read: Bitget Flags VOXEL Futures, Reverses Trades Amid Manipulation Fears
This incident on Bitget echoes a similar event on the decentralized exchange Hyperliquid in late March. A whale allegedly exploited liquidation parameters on the JELLY memecoin, netting at least $6.26 million in profit. In response, Hyperliquid delisted the JELLY perpetual futures contract, citing evidence of suspicious market activity.
As Bitget moves forward with its legal action, the cryptocurrency community will be closely watching the outcome, underscoring the ongoing challenges exchanges face in combating market manipulation and ensuring fair trading environments. The incident also highlights the potential risks associated with highly leveraged perpetual futures contracts and the importance of robust monitoring and risk management systems within trading platforms.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
