Bitget announced that it identified abnormal trading activity of the VOXEL/USDT perpetual futures contract and was forced to suspend multiple accounts amid suspected market manipulation. The announcement was made in a public statement.
According to Cointelegraph, Bitget identified "abnormal trading activity" in its VOXEL/USDT perpetual futures market, with trading volume surging to over $12 billion—surpassing volumes on major exchanges like Binance. The exchange attributed this to potential market manipulation by certain accounts and initiated a rollback of irregular trades. However, the lack of transparency regarding the incident's specifics and the identities of involved parties has raised concerns about Bitget's internal controls and risk management practices. This event has intensified scrutiny over Bitget's handling of market anomalies and user safeguards.
In response to the VOXEL/USDT trading irregularities, Bitget suspended accounts suspected of market manipulation and announced plans to legally pursue eight accounts that allegedly profited $20 million from the incident. The exchange also offered compensation to users who incurred losses during the affected period. As reported by The Block, this significant financial impact underscores the potential vulnerabilities in Bitget's trading systems and the challenges in maintaining market integrity. The incident highlights the need for robust surveillance and compliance mechanisms in cryptocurrency exchanges.
Bitget has faced regulatory actions in multiple jurisdictions. Notably, France's Autorité des Marchés Financiers (AMF) blacklisted Bitget in November 2023 for operating without proper authorization as a Digital Asset Service Provider (DASP). According to the AMF, Bitget's services were illegal under French law and posed risks to investors. Similar warnings and restrictions have been issued by regulators in Germany, Austria, Japan, Malaysia, and Canada, reflecting widespread concerns about Bitget's compliance with international financial regulations. These actions aim to protect investors from unauthorized and potentially harmful financial services.
Founded in July 2018 in Singapore, Bitget is a cryptocurrency exchange offering services such as spot and futures trading, copy trading, and digital asset investment solutions. Despite its growth, Bitget has encountered regulatory hurdles in several countries due to compliance issues. According to its official website, Bitget is committed to enhancing its regulatory adherence and expanding its global footprint responsibly.