Bitget Hack Sparks Record-Breaking Outflows Amid Reopening Withdrawals

Bitget, a cryptocurrency exchange, has experienced significant outflows in the wake of a major hack. The attack saw assets equivalent to $387.5 million stolen from the platform.

The company's security systems identified unauthorized transfers involving a limited number of hot wallets, prompting an emergency response and investigation.

Following the hack, Bitget suspended withdrawals while it conducted a security review. However, in recent days, the exchange has begun restoring withdrawals in stages, starting with Bitcoin on Monday and followed by Ether and Tether's USDT stablecoin.

The company expects to resume withdrawals for other tokens, as well as fiat and peer-to-peer services, on October 2.

Bitget's user protection fund, which had been touted as a safety net for customers, has dropped below $200 million following the hack. The company plans to replenish the fund using its own capital, aiming to have it above $300 million within one week.