Bitget Recovers from $388M Hack, Raises Questions about Exchange Security

In September 2026, the cryptocurrency exchange Bitget suffered a massive $388 million hack, with the thieves using privacy tools and decentralized protocols to evade detection and vanish with most of the stolen funds.

Despite the severity of the breach, Bitget's response was swift and effective. Instead of asking customers to cover the losses, the exchange utilized its Protection Fund to compensate for the theft.

The fund, which had been replenished to $309 million by September 30, was sufficient to cover all customer balances, and withdrawals resumed within days.

The hack was attributed to vulnerabilities in third-party software used by Bitget, as well as the theft of internal login credentials and the issuance of fake withdrawal requests.

The incident highlights the importance of robust security measures and adequate reserves for exchanges, as well as the risks associated with relying on an exchange to protect customer assets.