Bitget Files Lawsuit Against 8 Traders Over $20M VOXEL Token Manipulation

Taking decisive action in response to a recent disruptive event, the cryptocurrency exchange Bitget is pursuing legal action against eight account holders. These individuals are accused of crypto market manipulation, specifically manipulating the VOXEL token price on the platform’s futures market. Jiayin Xie, Head of Bitget’s Asian operations, stated that these accounts allegedly exploited a vulnerability, resulting in illicit profits exceeding $20 million. The exchange plans to issue formal legal letters and is actively working to recover the misplaced funds.

The incident was marked by a sudden, dramatic surge impacting the VOXEL token price, which triggered unusual trading activity. The platform responded swiftly by pausing trading on the affected contract and freezing suspicious accounts. CEO Gracy Chen emphasized that the irregularities were participant-driven. This is to assure strong cryptocurrency exchange security with no underlying systemic weaknesses. The exchange has promised the full distribution of recovered funds to affected users via airdrops as compensation.

How Did the VOXEL Manipulation Happen?

The exchange’s ongoing investigation indicates the eight accounts likely belong to a coordinated “professional interest group.” These individuals are not independent actors but specialists skilled at exploitative trading tactics. Jiayin Xie confirmed in an April 27 post on X that these groups were instrumental in manipulating the VOXEL token price. Their actions, a clear instance of crypto market manipulation, created major market disruptions, leading this digital asset to briefly surpass BTC in trading volume.

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

Questions arose within the community regarding potential penalties for other traders involved. Xie addressed these anxieties, saying that regular traders from that timeframe who had withdrawn funds would face no accountability. She also confirmed their accounts were restored, which helped boost confidence in Bitget’s cryptocurrency exchange security protocols and reassured users about avoiding future sanctions related to this event.

What Triggered the $12 Billion VOXEL Trading Spike?

The unusual situation became clear as the VOXEL/USDT pair’s trading volume on Bitget exceeded $12 billion. This figure substantially surpassed activity seen on competing platforms like Binance. Traders observed the token’s price soaring over 200% rapidly, climbing from approximately $0.125 to $0.1645. Such rapid and significant changes led the exchange to suspect crypto market manipulation, especially given reports that standard order book mechanisms were bypassed.

Additional investigation pointed towards a possible bug within the platform’s market-making bot that may have contributed to the unusual trading conditions. This potential vulnerability was then allegedly exploited by traders engaging in crypto market manipulation, using high-leverage bets to maximize their potential gains. The exchange promptly froze implicated accounts to reassure users of the platform’s commitment to cryptocurrency exchange security and trading integrity.

How Did Bitget Respond to the VOXEL Incident?

Following the event, the exchange maintained transparency with its community members. CEO Gracy Chen said that core systems were unaffected and user assets remained secure, reinforcing confidence in platform stability. She publicly denounced the manipulative actions, confirming that the platform’s internal review processes were being strengthened to prevent similar incidents in the future.

However, the platform’s management of this event sparked comparisons with an earlier incident on Hyperliquid. That situation involved a large trader manipulating liquidation parameters and exploiting the JELLY token on a decentralized exchange. Chen had previously criticized that exchange’s response, leading to accusations of hypocrisy against her. However, Bitget’s decisive actions during the VOXEL incident earned praise as a more rigorous approach to preserving market stability than in other cases.

Will Bitget’s Actions Deter Future Manipulation?

Bitget’s swift legal actions highlight its determination to uphold transparency and fairness within its trading ecosystem. Pursuing action against identified accounts sends a clear signal rejecting crypto market manipulation and deterring future attempts. The full redistribution of recovered funds via airdrops further demonstrates the platform’s focus on users in critical times.

While finalizing its comprehensive incident report, the exchange promises to share more insights soon to bolster community confidence. This episode underscores the inherent challenges in safeguarding fair trading within cryptocurrency exchanges but also demonstrates how firm and transparent responses can help rebuild trust when platform reliability is tested.