Bitget Rebuilds Protection Fund After $388 Million Hack, Raises Questions About Exchange Safety

In a brazen cyber attack on September 24, 2026, hackers stole approximately $388 million from Bitget, a major cryptocurrency exchange. The stolen funds included Bitcoin, Ethereum, USDT, and other cryptocurrencies. In response, Bitget successfully rebuilt its Protection Fund to $309 million, which was used to compensate for the theft.

Instead of compromising Bitget's private keys, the hackers exploited vulnerabilities in third-party software and stole internal login credentials to issue fake withdrawal requests. CEO Gracy Chen stated that these fraudulent orders drained the exchange's hot and warm wallets, while cold wallets remained secure.

Bitget's proof of reserves showed that the exchange had sufficient assets to back its customer balances, with 131% coverage overall and 142% for Bitcoin. This indicates that Bitget had sufficient assets to cover the stolen funds.

Despite the hack, Bitget's customers were not asked to cover the losses, as the exchange chose to pay for the theft from its Protection Fund. However, the fund is discretionary and controlled by Bitget alone, raising questions about the safety of keeping crypto on an exchange.