Bitget Confirms Compensation Plan Following Market Manipulation Incident

Crypto Twitter has been abuzz with a claim that Bitget took action against market manipulation by confiscating profits from a trading account and redistributing them to affected users. This mirrors the long-held suggestion of crypto researcher ZachXBT, who advocates for exchanges to freeze and redistribute profits made through manipulative trading practices.

The incident allegedly involved the $TUTUSDT contract, which experienced abnormal price fluctuations on August 9, 2026. According to a statement from Bitget's official Chinese-language account, the exchange has formulated a compensation plan for users whose short positions were forcibly liquidated due to these fluctuations.

The plan will use the fair market price at 15:00 UTC+8 on August 9 as the benchmark for calculating payouts, which will be made in USDT. Eligible users are instructed to contact customer service or their VIP account manager directly to register and receive compensation.

While Bitget's statement does not explicitly confirm the confiscation of a market maker's profits, it does demonstrate the exchange's willingness to compensate users proactively in response to abnormal market conditions.