Bitget Breach Sparks Centralized Exchange Security Concerns

The cryptocurrency market is facing a crisis of confidence after a major security breach at Bitget, a prominent exchange. The incident has left an estimated $351.6 million to $387.5 million in losses, making it one of the largest centralized custody incidents in recent years.

Preliminary forensic reports indicate that attackers compromised Bitget's core wallet-backend infrastructure and spoofed transaction data. However, the exchange reported that its cold storage reserves and overall customer funds remained largely isolated and protected.

The breach has reignited debates about centralized exchange transparency, internal insurance funds, and the need for non-custodial self-sovereignty solutions.