Bitget Pursues Legal Action Over VOXEL Manipulation

4 mins mins

Key Points:
– Bitget pursues legal action over VOXEL manipulation, targeting eight accounts that allegedly profited $20 million.
– Exchange will airdrop 100% of recovered funds to affected users.
– A trading bug in VOXEL futures enabled high-frequency arbitrage exploitation.
– Bitget promises a full incident report and maintains that most user funds remain secure.

Bitget pursues legal action over VOXEL manipulation, pledging to return all recovered funds via airdrop and enhance transparency through a full post-mortem.

Crypto exchange Bitget has launched legal proceedings against eight accounts accused of exploiting a vulnerability in VOXEL futures trading, generating over $20 million in profits during a sudden price surge. The platform has committed to returning 100% of the recovered funds to users via airdrops while continuing its investigation and preparing a comprehensive incident report.

Bitget Pursues Legal Action Over VOXEL Manipulation

On April 27, Bitget’s Chinese representative Xie Jiayin revealed that the exchange had sent legal notices to eight accounts allegedly involved in manipulating VOXEL futures markets.

These accounts are suspected to be part of a coordinated arbitrage group that exploited a trading glitch to extract more than $20 million in profits. Bitget pursues legal action over VOXEL notices, marking the first step in what Bitget describes as a broader campaign to hold the perpetrators accountable and restore market integrity.

Xie confirmed that all recovered funds would be redistributed in full to affected users through airdrops. She further emphasized Bitget’s ongoing efforts to uncover the technical loopholes and promised a full incident report would be released soon.

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：
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！…
— 谢家印 (@xiejiayinBitget) April 27, 2025

Bitget pursues legal action over VOXEL has reassured the community that most users were unaffected by the exploit, and those who legitimately traded VOXEL during the affected period will not face penalties. Jiayin reiterated that only eight accounts were directly linked to the exploit and labeled as instigators. All other traders are exempt from future investigations.

The exchange has vowed to airdrop 100% of the recovered funds back to users, upholding its commitment to transparency and user protection. This proactive stance sets a precedent in an industry frequently marred by platform inaction and opaque resolutions.

Abnormal VOXEL Surge Triggers Trading Freeze and Rollback

The trading incident occurred on April 20 when VOXEL, the native token of Voxie Tactics—a turn-based RPG game on Polygon—saw its price skyrocket by over 560% in 48 hours, jumping from $0.021 to $0.139. Bitget identified suspicious trading patterns in its VOXEL/USDT perpetual futures market, prompting an immediate suspension of trading activities and the freezing of certain accounts.

During this brief window, the trading pair generated nearly $13 billion in volume, surpassing even Bitcoin on the platform. Bitget subsequently rolled back abnormal trades to mitigate the impact and recover the manipulated gains.

VOXEL price movement for the last 7 days, screenshot taken on April 30, 2025 on CoinMarketCap. — *VOXEL price movement for the last 7 days, screenshot taken on April 30, 2025, on CoinMarketCap.*

Industry Fallout and Comparisons to Past Exploits

Bitget pursues legal action over VOXEL, a string of recent exploits across the crypto space, including the $5.8 million hack on Loopscale and the $49 million loss from Infini. Critics were quick to draw parallels between Bitget’s situation and that of DEX Hyperliquid, which suffered a similar exploit in March.

Ironically, Bitget CEO Gracey Chen had previously condemned Hyperliquid’s response as “immature and unprofessional,” sparking heated community discussions about double standards.

#Hyperliquid may be on track to become #FTX 2.0.

The way it handled the $JELLY incident was immature, unethical, and unprofessional, triggering user losses and casting serious doubts over its integrity. Despite presenting itself as an innovative decentralized exchange with a…
— Gracy Chen @Bitget (@GracyBitget) March 26, 2025

As the industry watches closely, Bitget’s next steps—including its promised transparency report and any forthcoming legal outcomes—could set a new benchmark for how centralized exchanges handle manipulation cases.

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