Bitget Targets 8 Accounts for $20M Manipulation of VOXEL Token

The centralized crypto exchange Bitget has initiated legal proceedings against eight accounts it alleges manipulated trading in the VOXEL token, resulting in $20 million in illicit gains. 

The incident took place on April 20, when VOXEL trading volumes spiked following abnormal activity between 4:00 p.m. and 4:30 p.m. Bitget temporarily suspended trading in the VOXEL/USDT pair, canceled disputed orders, and pledged to compensate affected users. 

The platform also said it is preparing a full report based on the results of its investigation.

Inside the VOXEL Incident at Bitget

On the day of the incident, the price of VOXEL (the native token of the Polygon-based game Voxie Tactics) jumped more than 560% over a two-day period, rising from $0.021 to over $0.17. Several traders allegedly secured six-figure profits by investing only a few hundred dollars. 

According to Bitget, trading volume during the surge topped $12.7 billion. 

For comparison, Bitcoin trading volume on the platform totaled $4.76 billion over the same period. 
At the time of writing, VOXEL was trading at around $0.075 on Bitget.

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The exchange said it identified a “professional arbitrage” group that exploited a flaw in the market maker’s algorithms to repeatedly profit within a narrow price range. 

Following the anomaly, Bitget said it swiftly suspended trading on the affected accounts and canceled the disputed trades.

Next Steps Following VOXEL Incident  

Xie Jiayin, head of Bitget’s Asia division, said the exchange plans to send legal letters to the holders of eight accounts believed to be the primary organizers behind the alleged misconduct. Such letters typically precede formal legal action.

Furthermore, Bitget pledged to fully reimburse affected users through an airdrop and said it would not pursue claims against traders who withdrew assets during standard trading activity. The exchange also restored full functionality to accounts that had been temporarily suspended during the investigation.

Related: Bitget Secures Digital Asset Service Provider License from El Salvador

Community and Expert Reaction  

Some users criticized Bitget’s response to the incident. “If it is a normal transaction and not a bug caused by a technical attack, what is wrong with that? The correct solution is to look for the problem in yourself first,”

one X user wrote.

Meanwhile, analyst Dylan pointed out that hybrid custody systems can expose platforms to manipulation risks, citing the lack of position size limits. He added that insufficient oversight of market-making bots likely enabled the exploit at no upfront cost to the attackers.

Currently, Bitget remains one of the fastest-growing crypto platforms, with more than 100 million users and a daily trading volume of about $20 billion. Still, the VOXEL incident could pose a test for user trust.