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

A major cryptocurrency exchange was hacked on September 24, 2026, resulting in the loss of approximately $388 million. Bitget's Protection Fund absorbed the losses and has since been rebuilt to over $309 million.

The hackers exploited vulnerabilities in third-party software that Bitget had acquired, stole internal login credentials, and issued fake withdrawal requests, draining the exchange's hot and warm wallets while cold wallets remained secure.

Bitget's proof of reserves showed 131% coverage overall, including 142% for Bitcoin and 110% for Ethereum. The exchange temporarily froze withdrawals to safeguard customer assets but reopened them within days.