Bitget Scrambles to Contain Fallout From Massive VOXEL Trading Incident

Bitget is facing a major trading mishap with the VOXEL/USDT pair, leading to an unprecedented spike in volume and a glitch that enabled users to capitalize on rapid price movements.

Bitget Reaches Out to Key Accounts in VOXEL Trading Incident as Recovery Fund Hits $20 Million

Bitget is taking further steps to manage the fallout from the incident involving the VOXEL/USDT pair on April 20, which saw an unprecedented surge in trading volume.

According to a statement by Bitget, the incident, which also triggered a glitch in Bitget’s trading system that allowed users to exploit narrow price swings to amplify their trades, is now entering a new phase as the exchange prepares to take legal action against eight key accounts identified by Bitget and linked to professional trading groups.

The incident, which saw VOXEL’s trading volume spike over 200% to $12.7 billion—surpassing Bitcoin’s volume on the platform—was clocked at over $10 billion in a single day. For reference, Bitget’s usual daily trading volume hovers around $20 billion.

The glitch in Bitget’s system allowed users to repeatedly exploit narrow price swings, with some managing to transform $100 into six-figure sums in the space of minutes.

However, Bitget has stated that it will be redistributing any recovered assets to users via airdrops, and that regular traders who withdrew their funds during the trading window will not face any penalties.

Despite the promising move, community response has been lukewarm at best, with critics on social media slamming Bitget for its handling of the situation.

suggest the fault lies in Bitget’s infrastructure, not the traders, who were simply engaging in "a valid strategy to capitalize on the market behavior."

Another user warned against Bitget attempting to reclaim funds from unsuspecting users who may have received them from family members or friends, adding that "It’s a scam. Don’t fall for it."

Others went further, openly questioning Bitget’s operational integrity and suggesting that the platform is "a complete joke" and an "unlicensed offshore scam."

Hybrid Custody Model Comes Under Scrutiny

Analysts have also raised deeper concerns about Bitget’s hybrid custody model, which they suggest exposed users to unnecessary systemic risks and made the platform vulnerable to manipulation.

suggest that Bitget is now reaping the whirlwind of its actions, adding that the exchange should be prepared for a lengthy and challenging legal battle.

However, 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 also seen a surge, suggesting that investor confidence hasn’t entirely evaporated—yet.

Only time will tell whether Bitget can rebuild trust after the VOXEL debacle as it faces mounting pressure to fulfill its promises of transparency, compensation, and accountability.