Bitget to Pursue Legal Action Against 8 Accounts Linked to VOXEL Trading Abnormality

Edyme

April 28, 2025

Xie Jiayin, Head of Asia at Bitget, stated on X:“Bitget will issue eight lawyers' letters in succession

Bitget has announced plans to issue legal notices to 8 accounts suspected of manipulating VOXEL trading, profiting over $20 million, following an investigation into abnormal market activity.

Background:

Bitget, one of the leading cryptocurrency exchanges in the market, revealed it will take legal action against 8 accounts suspected of manipulating trades on its VOXEL perpetual futures market, leading to illicit profits totaling over $20 million.
The issue stems from abnormal trading activity that occurred on April 20, when VOXEL, the native token of the Polygon-based game Voxie Tactics, experienced an unexpected surge of more than 500% in just two days.
In response, Bitget rolled back affected trades conducted during a specific window and froze suspicious accounts while initiating a thorough investigation.
The exchange plans to recover the misappropriated funds and distribute 100% of the recovered assets back to impacted users via an airdrop.

Why should you pay attention?

This move underlines exchanges' growing reliance on legal recourse to handle manipulation cases in decentralized and relatively opaque markets.
The trading abnormality event shines a light on the vulnerabilities of smaller, low-liquidity tokens like VOXEL and how coordinated groups can exploit market-making algorithms on centralized platforms.
The fact that the exchange plans to release a full incident report clarifying the details of the manipulation signals a form of emphasis on transparency and accountability.

Who said what?

Xie Jiayin, Head of Asia at Bitget, stated on X:

“Bitget will issue eight lawyers' letters in succession. The professional wool interest groups associated with these eight accounts improperly gained more than $20 million.”

Jiayin added:

“All recovered funds will be fully distributed to users via airdrop.”

He also mentioned:

“Accounts outside of these eight, who participated between 16:00-16:30 on April 20 and withdrew funds, need not worry — they will not be held responsible.”

The Head of Asia at Bitget also noted:

"We will release a complete accident report on the VOXEL incident as soon as possible to restore the truth of the incident."

Zooming out:

The incident reflects the increasing sophistication of arbitrage and manipulation strategies targeting niche crypto markets, particularly those with lower liquidity barriers.
Bitget’s swift rollback of trades and public disclosure of legal steps showcases a maturing approach to crisis management among centralized exchanges.
As exchanges aim to maintain trust and market integrity, regulatory bodies may look more closely at these self-policing actions when evaluating future frameworks for crypto oversight.