Bitget Hacked for $351.6 Million: Why Its Token Remains Resilient
Bitget, a cryptocurrency exchange, was hacked and lost $351.6 million to attackers. Despite this significant loss, the price of Bitget's exchange token, BGB, is holding up relatively well.
The token's value dropped by about 3-5% after the breach came to light, but it has not collapsed as one might expect given the scale of the theft. This suggests that traders believe Bitget can absorb the loss and continue to operate without any major issues.
Bitget claims that its User Protection Fund holds more than $464 million, which is enough to cover the lost funds. The exchange also has a history of publishing proof-of-reserves reports, most recently showing a 122% reserve ratio for August.
Deposits and trading continue on Bitget, but withdrawals are still frozen due to the ongoing investigation. Much of BGB's trading takes place on the exchange itself, which may be limiting selling pressure for now.