Bitget Hit by $350M Hack: Exchange's User Protection Fund to Cover Losses

Crypto exchange Bitget has been hit by a major hack, with over $350 million in assets drained from its hot wallets. According to CEO Gracy Chen, only the exchange's hot wallets were affected, while cold wallets remain 'fully secure'. The stolen funds will be covered by Bitget's User Protection Fund, which holds over $464 million.

The hack was first flagged by on-chain sleuths late Thursday, who noticed unusual activity involving a newly created address. Within an hour, roughly $183 million in assets moved out of wallets labeled as belonging to the exchange and into this new address.

Initial reports suggest that the hacker used services like UniswapX and 1inch Fusion to move the stolen funds quickly. The purchases were made at a premium price, indicating that speed was more important than getting a good deal.