Bitget has recently attracted attention due to the abnormal trading of Voxel/USDT perpetual contracts. The trading volume once soared to 12.7 billion US dollars, and the price soared by more than 200%. Bitget subsequently froze the account, rolled back the transaction, and planned to compensate the affected users, but did not publicly state that it was preparing to sue.
Bitget's response measures include internal investigation, freezing suspected abnormal accounts, and compensating losses through a $300 million protection fund instead of resorting to legal action. This is in line with the practice of the cryptocurrency industry, where exchanges usually handle such issues through terms of service.
Evaluation and influence
The Voxel incident exposed Bitget’s technical vulnerabilities and lack of transparency, which may affect user trust. Bitget needs to improve its systems and communication strategies to restore its reputation, and the industry also needs to reflect on the risk management of centralized exchanges.
Detailed Report
The Bitget exchange has recently sparked widespread discussion due to the Voxel incident. Users mentioned that "the exchange is preparing to sue this matter later", but according to public information before April 28, 2025, Bitget has not explicitly stated that it is preparing to sue anyone. The following is a comprehensive analysis of the incident, aiming to provide an objective and in-depth evaluation.
Event Overview
On April 20, 2025, Bitget's Voxel/USDT perpetual contract trading pair had a trading volume of $12.7 billion in 30 minutes, far exceeding Bitcoin's trading volume (about $4.76 billion) during the same period. The price rose from about $0.125 to $0.1645, an increase of more than 200%, and then fell back to $0.09131, still 40% higher than the initial price. According to VOXEL Token Soars Over 200% in 30 Minutes on Bitget, Triggers $12.7 Billion Trading Frenzy and Exchange Review, the incident was suspected to be caused by a malfunction of Bitget's market-making robot, and some users took advantage of the loophole to make a profit, such as someone earning $190,000 with $100.
Bitget’s response included:
438 suspected abnormal accounts were frozen and withdrawals from the Voxel-Polygon chain were suspended.
Roll back transactions between 8:00-8:30 UTC.
It plans to compensate affected users through USDT/BGB airdrops and use a $300 million protection fund to cover losses.
The official statement mentioned that the abnormal transactions were triggered by "user market manipulation" (Bitget detects irregularity in VOXEL-USDT futures, rolls back accounts), but the community generally believes that it may be caused by system failure
But in the cryptocurrency industry, in-house processing is more common because:
When users register, they agree to the exchange's terms of service, giving Bitget the right to take action.
Prosecution is time-consuming, costly, and can further damage reputation.
Similar incidents (such as Hyperliquid's Jelly incident) were also resolved through internal mechanisms without any legal action.
Technical loopholes and trust crisis
The Voxel incident exposed the technical loopholes of the Bitget system, especially the failure of the market-making robot to anchor prices and the distortion of the liquidity depth simulation. According to MarsBit's analysis, the incident may have been caused by a failure in the automated program of the market-making mechanism, which led to abnormal price fluctuations. Some users profited from arbitrage through the loopholes, causing dissatisfaction in the community.
Bitget’s official statement accused “user market manipulation”, but X user Colin Wu criticized the term “too risky” in X post and suggested changing it to “market making error” to reduce the public relations crisis. Bitget CEO Gracy Chen emphasized the compensation plan and protection fund in an interview, but did not elaborate on the cause of the technical failure, which was seen as a lack of transparency.
After the incident, the price of Bitget’s platform currency BGB fell by 5%, and the annualized staking yield dropped from 12% to 5%. It is estimated that the number of active users and contract holdings decreased by 10% respectively, reflecting a significant decline in user trust (Bitget’s $12B VOXEL frenzy fizzled fast, but questions remain).
Crisis Management and User Protection
Bitget's crisis management includes freezing accounts, rolling back transactions and compensation plans, showing its sense of responsibility to users. According to Bitget detects irregularity in VOXEL-USDT futures, rolls back accounts, CEO Gracy Chen said: "Our $300 million protection fund is sufficient to support users and ensure the safety of assets." However, the practice of freezing accounts and rolling back transactions may make some users who have made legitimate profits feel unfair, especially causing controversy in the community.
The compensation plan is implemented through USDT/BGB airdrops, but the specific details have not yet been announced, which may affect users' perception of fairness. According to Bitget Detects Abnormal VOXEL Activity, Launches Trade Rollback and Compensation Plan, Bitget promises to complete the transaction rollback within 24 hours, but the transparency of crisis communication still needs to be strengthened.
Industry reflection and future prospects
The Voxel incident is not only an individual case of Bitget, but also reflects the common problems of the entire cryptocurrency exchange industry:
Technical security: While centralized exchanges pursue transaction efficiency, technical security and user protection are often neglected. The automated procedures of the market-making mechanism need to be more robust to avoid similar failures.
Detailed timeline and action plan
time
Event Details
April 20, 2025 8:00-8:30 UTC
Voxel/USDT contract trading is abnormal, with trading volume reaching $12.7 billion and price soaring by more than 200%
April 20, 2025
Bitget suspends Voxel-Polygon chain withdrawals, freezes 438 abnormal accounts, and recovers $230,000 in funds
April 20, 2025 Within 24 hours
Announced to roll back the 8:00-8:30 transactions and planned to compensate affected users through USDT/BGB airdrops
After the incident
BGB price fell by 5%, and the staking yield dropped from 12% to 5%. It is expected that users will trust the Bitget Voxel incident. Summary in plain language:
1. What happened
Abnormal price surge: On April 20, 2025, the trading volume of the Voxel/USDT contract on Bitget soared to US$12.7 billion (higher than Bitcoin) in just 30 minutes, and the price soared from US$0.125 to US$0.1645 (an increase of more than 200%), and then fell back.
Suspected system failure: It may be that there is a bug in Bitget's market-making robot, which leads to abnormal prices. Some people took the opportunity to arbitrage, for example, they made $190,000 with $100.
2. Bitget’s processing method
Frozen accounts: 438 abnormal trading accounts were frozen and Voxel withdrawals were suspended.
Rollback transactions: Transactions during the abnormal period (8:00-8:30 UTC) were directly cancelled.
Compensate users: Use a $300 million protection fund to compensate affected users, and plan to airdrop USDT/BGB.
Official statement: Bitget claims that “users manipulate the market,” but many people think it is a problem with the exchange’s own system.
3. Why doesn’t Bitget sue directly?
Industry practice: Exchanges generally freeze and roll back transactions directly according to the user agreement rather than filing a lawsuit (which is too troublesome and affects reputation).
Similar case: Hyperliquid’s Jelly incident was also resolved internally without taking legal action.
4. Exposed issues
Technical loophole: The market-making robot lost control and price calculation was wrong.
PR failure: Bitget blamed “user manipulation” and was criticized for admitting a system bug (for example, user X Colin Wu suggested changing the name to “market-making error”).
Trust crisis: After the incident, Bitget's platform currency BGB fell by 5%, and user activity is expected to drop by 10%.
5. Subsequent impact
User dissatisfaction: The rollback of transactions made some people who engaged in "legal arbitrage" feel unfair.
Industry reflection: Exchanges cannot just pursue transaction speed, risk control and transparency must also keep up, otherwise they will easily be targeted by regulators.
Timeline
Time Event
April 20, 8:00-8:30 UTC Voxel price surged 200%, trading volume reached $12.7 billion
On the same day, Bitget froze 438 accounts and recovered $230,000
Announce rollback of transaction within 24 hours and prepare compensation
After the incident, BGB fell 5% and user trust declined
Netizens complained
"Instead of blaming users, Bitget should just fix the bug!" (Colin Wu)
“Roll back the transaction? What about people who make money normally?” (Community controversy)
Summary: Bitget's problem this time was a system failure + crisis public relations error. It is currently being solved by internal means and has not yet reached the stage of prosecution. However, user trust has been damaged, and subsequent improvements will have to be made to restore its reputation.$BTC 
