Bitget Hackers Begin Laundering Stolen Funds Through THORChain
Bitget, the cryptocurrency exchange that was recently hacked for $387.5 million, has processed over 4,098 BTC in withdrawals since reopening its services on September 28.
The exchange's tracked Bitcoin balance fell to around 30,770 BTC from 35,412 BTC, a decline of roughly 4,642 BTC, which represents about $391 million at prevailing prices.
Bitget CEO Gracy Chen stated that the attack did not compromise the exchange's private keys or cold-wallet reserves and that customers will bear no losses due to the incident. The Protection Fund will cover the shortfall, with Bitget planning to replenish it with its own capital to more than $300 million within a week.
The stolen funds are now being laundered through various channels, including THORChain, which has been accused of not intervening despite being aware of the illicit activity. Blockchain security firm GoPlus argued that THORChain's architecture allows its node operators to coordinate intervention when needed and that it has benefited financially from its neutral stance in the past.