Bitget Hit with Record $463M Outflow Amid Withdrawal Reopening

Bitget, a major cryptocurrency exchange, experienced a massive outflow of customer assets worth $463 million within 24 hours. This is the largest single-day outflow measured by DefiLlama since it started tracking reserves four years ago.

The outflow occurred as Bitget reopened withdrawals that were frozen after a September 24 attack, which cost the exchange an estimated $387.5 million to $388 million. The user protection fund, meant to absorb damage from the attack, dropped from over $464 million to below $200 million.

CEO Gracy Chen stated that Bitget will top up its user protection fund out of its own capital with the aim of reaching $300 million within a week.

The incident highlights the importance of understanding counterparty risk in exchanges. According to DefiLlama, 40 of the 80 centralised trading venues it tracks have a weekly net outflow, including Binance at $735 million.