Bitget Hack Exposes Vulnerabilities in Crypto Exchange Security

The crypto exchange Bitget has been hit by a massive hack that saw over $351.6 million in assets siphoned off from its wallets, with the company's CEO Gracy Chen stating that only part of its hot and warm wallet tier was affected.

According to CoinDesk, Chen said that the cold wallets were intact, but it remains unclear whether this will be enough to cover the losses. The outflows were spread across 15 transfers and seven assets on several networks, with the largest single block being Ethereum at 44.4%.

The hack has left existing European customers in a precarious situation, as Bitget is no longer permitted to take on new business in the EEA due to its lack of MiCA authorisation. The company had previously exited the EEA market and told existing customers to withdraw their balances, but this route is now temporarily closed.

Regulation experts are warning that a withdrawal freeze like this can be particularly damaging for European investors, as it leaves them with limited options to recover their funds. In this case, Bitget's protection fund holds over $464 million, which the company claims will cover the losses in full, but critics argue that this is not the same as statutory deposit insurance.

Experts are advising customers to check their balances and file a withdrawal request as soon as possible, while also verifying whether their provider has a MiCA authorisation. The ESMA register lists authorised providers, which can provide an additional layer of protection for investors.