Bitget Exchange Hit by $351.6M Hot Wallet Breach
Bitget, a cryptocurrency exchange, has confirmed that its hot wallet was breached, resulting in an estimated loss of $351.6 million. The breach is believed to have affected parts of its hot and warm wallet infrastructure, but the company's cold wallets were not compromised.
The incident occurred when unauthorized transfers took place from the affected wallets, and Bitget has temporarily suspended withdrawals while it investigates the breach with law enforcement and security firms.
Fortunately, the exchange's User Protection Fund, which holds over $464 million, is expected to cover the entire estimated loss. This means that customers will not be affected by the incident.
The breach highlights the importance of robust security measures in protecting user funds. It also underscores the distinction between exchange custody and self-custody, as Bitget's separate self-custodial wallet infrastructure was not involved in the incident.