Binance Offers Support to Hacked Rival Bitget Amid Federal Probe
Bitget, a cryptocurrency exchange, was hacked on September 24, resulting in the theft of $388 million. The attackers primarily targeted XRP, taking approximately 103 million units valued at around $157 million.
The hackers manipulated Bitget's backend transaction data to falsify deposit slips, rather than stealing private keys controlling the wallets.
Changpeng Zhao, founder of Binance, pledged support to Bitget without specifying any particular amount or asset. This gesture may bolster Binance's image amid a concurrent federal probe into whether Binance allowed funds linked to Iran to flow through its platform.
Bitget's $464 million User Protection Fund fully covers the loss, leaving around $76 million intact after repaying affected users. The fund is made up of Bitget's own capital, separate from its operating balance.