Cryptocurrency exchange Bitget detected unusual trading activity in VOXEL/USDT futures and froze suspicious accounts. The incident occurred on April 20 between 8:00 and 8:30 UTC. The exchange's management has promised compensation to affected users. Funds suspected of manipulation will be returned within 24 hours.
In an official statement, Bitget said it had identified "abnormal trading activity" related to perpetual VOXEL/USDT contracts. Accounts allegedly involved in manipulative behavior were immediately frozen. Within 24 hours, the exchange plans to cancel trades that resulted from suspicious activity.
According to Bitget CEO Gracy Chen, the trades were carried out between individual market participants, not by the platform itself. She emphasized that users’ funds remained safe and the incident did not affect Bitget’s infrastructure.
Promise of Compensation
Chen stated that the exchange is preparing a compensation plan for users who suffered losses due to the abnormal activity. She added that the platform has a $300 million protection fund, which is sufficient to cover all damages.
“Bitget is fully prepared to compensate for any residual losses. Our $300 million protection fund provides robust support for users in such situations, ensuring asset security,” Chen said.
Comparison to Incident on Hyperliquid
The case at Bitget sparked discussions about the role of centralized exchanges in preventing market anomalies. Some traders compared the situation to a March incident on the Hyperliquid platform, where the price of the Jelly-my-Jelly (JELLY) token surged over 400%, triggering mass liquidations of short positions.
At the time, a trader opened a long and an equivalent short position simultaneously, causing a price spike and subsequent order liquidations. Due to the trade’s volume, part of the funds flowed through the Hyperliquidity Provider Vault (HLP). In response, Hyperliquid delisted JELLY futures, drawing criticism from the crypto community.
Gracy Chen was one of the harshest critics of Hyperliquid’s decision.
“The move to close the JELLY market and forcibly liquidate positions at a favorable price sets a dangerous precedent. The foundation of any exchange service is trust, not capital,” she wrote in a March post on X.
What’s Next
Bitget has not yet published details of the compensation mechanism but confirmed that actions regarding the frozen accounts will be completed within the next 24 hours. The exchange has pledged to strengthen measures against manipulative strategies on the platform.
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