Bitget Hacked for $388M, Recovery Hopes Dashed

Bitget, a cryptocurrency exchange, was hit by a massive cyberattack last week, with nearly $388 million stolen. According to CEO Gracy Chen, the exchange is not expecting to recover a lot of funds from the hack, citing the limited recovery from previous exchange hacks.

The hack occurred despite Bitget's protection fund, valued at over $464 million before the theft, being drawn down to below $200 million following the attack. However, the fund was restored to over $300 million, with the replenished fund remaining publicly verifiable on-chain.

The investigation into the hack found that the attackers compromised two third-party security products, exploiting a previously unknown vulnerability in one of the products. Chen declined to disclose further vendor or product details, citing potential security risks.

Withdrawals for bitcoin, ether, and USDT have resumed, with Bitget scheduled to resume withdrawals for its remaining cryptocurrencies, along with fiat and peer-to-peer services, on Friday.