Bitget Replenishes Protection Fund to Over $300 Million After Security Breach
Crypto exchange Bitget has restored its Protection Fund to over $300 million after a security breach drained its hot wallets and halted withdrawals. The fund, which was established in 2022 with 5,500 BTC and a stated minimum value of $300 million, sits separately from the reserves backing customer balances.
The exchange suspended withdrawals on September 24 after detecting unauthorized transfers from its hot wallets. It initially estimated the financial impact at approximately $351.6 million but has since revised it to around $388 million.
Bitget's CEO Gracy Chen said that the Protection Fund was created for moments like this and absorbed the financial impact of the incident. Withdrawals are now resuming in phases, with all 19 assets in the latest Proof of Reserves snapshot carrying reserve ratios above 100%.