Bitget Restores Protection Fund, Resumes Withdrawals After $387.5 Million Hack

Bitget has replenished its user protection fund to over $300 million, restoring a key safety buffer after a significant hack on September 24 that saw attackers steal around $387.5 million.

The exchange's CEO, Gracy Chen, said the fund now holds approximately 3,705 bitcoin and the company's reserve ratio stands at 131%, based on a September 29 snapshot. This means Bitget holds reserve assets equivalent to 1.31 times the eligible user balances covered by its proof-of-reserves disclosure.

Withdrawal services for Bitcoin, Ether, and Tether have been resumed, with other cryptocurrencies, fiat currencies, and peer-to-peer services scheduled to reopen on October 2 at 5 p.m. The restoration of the protection fund provides some reassurance to Bitget users, but those holding smaller or less liquid assets will wait longer to access their funds.

The company has said it will absorb the loss through the fund and replenish the amount used. Bitget's initial investigation found that attackers exploited a vulnerability in a third-party security product to obtain internal credentials with elevated privileges, which were then used to send unauthorized withdrawal instructions.