Bitget's $352 Million Hack Threatens Exchange's User Protection Fund

Bitget, a cryptocurrency exchange, detected unauthorized transfers from its hot and warm wallets on September 24 at 2:31 p.m. ET (18:31 UTC). The breach resulted in a loss of $351.6 million.

The exchange's User Protection Fund held more than $464 million, which would be used to cover the losses. However, if the full amount must be reimbursed, it could leave the fund below its stated minimum of $300 million.

Reimbursing $351.6 million from the fund would leave approximately $112.4 million remaining. The exchange is working with Mandiant and SlowMist to investigate the breach and assess potential recoveries.

The Protection Fund is backed by 5,500 Bitcoin (BTC), and Bitget Wallet's separate self-custodial wallet was unaffected by the breach. Withdrawals were suspended during the security review, while deposits and trading remained available.