Bitget is scrambling to manage the fallout from a major trading mishap involving the VOXEL/USDT pair, committing to a $20 million recovery fund and launching legal action against the primary actors involved.
The incident, which unfolded on April 20, triggered an unprecedented spike in VOXEL’s trading volume — surging over 200% to $12.7 billion, even overtaking Bitcoin’s volume on the platform. A glitch in Bitget’s trading system allowed users to repeatedly exploit narrow price swings, with some turning $100 into six-figure profits within minutes.
Bitget has since identified eight key accounts tied to professional trading groups accused of siphoning off millions. The exchange plans to send formal legal notices to these groups and recover funds where possible. To compensate affected users, Bitget announced it would redistribute recovered assets via airdrops, clarifying that regular traders who withdrew their funds during the trading window would not face penalties.
However, community response has been far from forgiving. Critics on social media blasted Bitget for its handling of the situation, arguing the fault lies with the exchange’s infrastructure, not the traders. Some warned against Bitget attempting to reclaim funds from unsuspecting users, while others openly questioned the platform’s operational integrity.
Analysts have also raised deeper concerns about Bitget’s hybrid custody model, suggesting that it exposed users to unnecessary systemic risks and made the platform vulnerable to manipulation. Post-incident, skepticism around Bitget’s professionalism and security standards has intensified.
Despite the controversy, Bitget continues to report strong growth metrics, boasting over 100 million users and a daily trading volume of around $20 billion. Its native token, BGB, has even seen a surge, suggesting that investor confidence hasn’t entirely evaporated — yet.
Whether Bitget can rebuild trust after the VOXEL debacle remains to be seen, as the exchange faces mounting pressure to fulfill its promises of transparency, compensation, and accountability.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/bitget-scrambles-to-contain-fallout-from-massive-voxel-trading-incident/