Crypto exchange Bitget recently announced its decision to reverse a number of trades and provide compensation to affected users following an episode of abnormal activity in its perpetual futures market involving the relatively obscure digital token, VOXEL. The incident, which occurred early Sunday, saw the token’s trading volume briefly surpass that of Bitcoin, the largest and most liquid cryptocurrency.
VOXEL, a token tied to the Polygon-based role-playing game Voxie Tactics, has surged more than 300% over the past week, currently ranked 723rd by market capitalization according to CoinMarketCap. The dramatic spike in trading volume raised concerns within Bitget, prompting an internal investigation. The platform identified certain accounts that may have attempted to manipulate the market, leading to sudden and extreme price movements in VOXEL futures contracts.
In response, Bitget took action by suspending trading, deposits, and withdrawals for the flagged accounts. The exchange assured users that all other accounts remained unaffected and user funds were secure. Bitget stated in a released statement on April 20 that, “Upon investigation, certain accounts were found to have potentially engaged in market manipulation, triggering our risk control system.”
The exchange’s team is currently working to unwind trades linked to the anomaly and will compensate users affected by the incident. Despite VOXEL’s low trading volume, the token has garnered attention due to its association with Voxie Tactics, a blockchain-based tactical RPG that allows players to earn crypto rewards. The sudden surge in futures activity, however, appears disproportionate to the token’s usual market presence.
This incident highlights the risks associated with trading lightly regulated or low-liquidity digital assets on leveraged products such as perpetual futures. It also underscores the importance for centralized exchanges to maintain fair trading environments while safeguarding user interests.
Overall, Bitget’s response to the abnormal token trading with rollbacks and refunds demonstrates the exchange’s commitment to addressing market manipulation risks and ensuring a secure trading environment for its users.