Singapore-based cryptocurrency exchange Bitget is taking major legal steps after a scandal involving its VOXEL token market. According to Bitget’s head of exchange Jiayin Xie, eight user accounts are being sued for allegedly manipulating the VOXEL token’s price, profiting by over $20 million.
The issue originated from a glitch in Bitget’s market-making bot around April 20. This glitch caused extreme volatility, allowing some traders to exploit the rapid price movements — with the token briefly priced at around $0.1645. Bitget clarified that the incident wasn’t caused by hacking or an internal breach, but due to technical malfunctions that bypassed normal price controls.
In response, it immediately froze suspicious accounts, halted VOXEL trading, and announced that any recovered funds would be distributed back to affected users via airdrops. Importantly, users who traded VOXEL between 4:00 PM and 4:30 PM on April 20 and withdrew their funds will not be penalized, and their accounts have been reinstated.
This situation is attracting attention, especially after Bitget’s CEO, Gracy Chen, previously criticized Hyperliquid for their handling of a similar manipulation incident with the JELLY token. Some now accuse it of hypocrisy, although the exchange maintains that its transparency and rapid action differentiate its response.
It is determined to restore user trust, emphasizing that ensuring fairness and market integrity remains its top priority.
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