Bitget Aims at Traders Through Legal Measures Concerning VOXEL Price Manipulation
Cryptocurrency platform Bitget has initiated legal proceedings against eight individuals accused of impacting the price of VOXEL perpetual futures contracts. The protocol asserts that these traders illicitly gained over $20 million during an episode on 20 April 2025.
Xie Jiayin, leading Bitget’s operations in China, disclosed in a post dated 27 April 2025 on X that the exchange’s legal team will be dispatching letters to the accused accounts “in rapid succession.”
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Bitget Pursues VOXEL Manipulators
Jiayin identified these accounts as the “primary instigators” behind the manipulation, assuring other VOXEL traders that no additional measures would be taken against users who traded and withdrew funds on that date without being part of the scheme.
The complication arose when Bitget identified atypical trading activities in its VOXEL/USDT perpetual futures trading market. The trading volume exceeded $12 billion—significantly surpassing usual levels and outpacing transactions on larger exchanges like Binance.
Bitget promptly froze suspected accounts and annulled abnormal trades to reclaim illicit profits.
At that time, Bitget CEO Gracy Chen explained that the transactions were only between individual market players, emphasizing that the platform itself was secure and user funds remained safe.
Jiayin confirmed that Bitget intends to return 100% of the recovered funds to impacted users through airdrops, with a comprehensive incident report imminent.
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
Speculation in the crypto community indicates that the manipulation may have been initiated by a fault in a trading market maker bot, which inflated VOXEL trading volumes.
Astute traders reportedly took advantage of the bug by utilizing high-leverage positions, transforming the glitch into a no-cost profit opportunity. VOXEL functions as the native crypto token for Voxies, a blockchain-based tactical RPG game on ETH.
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Investor Capitalizes on Hyperliquid’s Liquidation Mechanism for $6.26M in JELLY Futures
This incident resembles a similar scenario on 27 March 2025 involving decentralized exchange Hyperliquid, where a trader allegedly manipulated liquidation mechanisms to net $6.26 million from JELLY memecoin futures.
The assailant utilized $7 million across various accounts to induce a 400% bull run. This compelled Hyperliquid’s market fluidity vault to bear the losses.
Ultimately, Hyperliquid terminated the JELLY trading market. Additionally, Hyperliquid committed to compensating affected users, but faced significant backlash for its management of the situation.
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Key Takeaways
- Bitget is pursuing legal action against eight traders accused of manipulating VOXEL futures and gaining more than $20 million.
- A suspected bot error resulted in unusual VOXEL trading volumes, which clever traders exploited with high-leverage positions.
- Bitget will distribute recovered funds to affected users through airdrops and is drafting a detailed incident report.
The post Bitget Targets Traders With Legal Action Over VOXEL Price Manipulation appeared first on 99Bitcoins.
