Crypto exchange Bitget sent legal notices to eight accounts it says drove a sudden surge in VOXEL token trading and made over $20 million in gains. The exchange’s Chinese representative, Jiayin Xie, revealed on X(Twitter) that these accounts appear linked to a “professional arbitrage group.”
Unusual Volume Triggers Action
VOXEL, the token tied to the Polygon-based game Voxie Tactics, saw its trading volume briefly outpace Bitcoin’s last week.
In just 30 minutes on April 20, VOXEL’s price jumped more than 200% on Bitget, hitting $0.1645 before retreating to $0.09131, which is still about 40% above its earlier value. Bitget’s systems flagged the extreme volume and wild swings almost immediately.
Swift Suspension of Suspicious Accounts
Bitget moved fast. It froze the eight accounts it suspected of manipulation and halted their trading, deposits and withdrawals. The exchange has not named the individuals behind these accounts.
It also has not indicated whether any internal technical issues played a part. Bitget stressed that most of its users were not harmed by the incident.
Also Read: Bitget Achieves $2.08 Trillion Trading Volume In Q1 2025 With 159% Spot Growth
Funds to Be Returned via Airdrop
Bitget, which is based in Victoria, Seychelles, said it plans to return all recovered funds to its users through an airdrop. This approach aims to make good on the losses that genuine traders might have faced during the tumultuous VOXEL surge and fall.
Recent Exploits in Crypto Space
This $20 million case adds to a growing list of high-profile incidents in the crypto world. Just two weeks ago, the Solana DeFi platform Loopscale lost $5.8 million in an exploit shortly after launching.
Before that, stablecoin neoback Infini suffered a $49 million loss. Each event has raised fresh questions about security and oversight in decentralised finance.
Community Reactions and Theories
On X(Twitter), some traders have pointed fingers at a potential glitch in Bitget’s market-making software. They argue that an error, rather than deliberate wrongdoing, may have led to the abnormal volumes.
Others compared the lawsuit to a casino suing a gambler for hitting a jackpot. These debates underline the murky lines between rapid trading strategies and outright manipulation.
Bitget’s legal move against the eight accounts sends a clear message: the exchange will not tolerate suspected manipulation. By suspending the accounts and promising to refund affected users, Bitget aims to uphold trust in its platform.
As regulators and users watch closely, the case could set a precedent for how exchanges respond when sudden trading spikes raise alarm.