Bitget's Repeated Missteps Erode Trust in Wake of $388 Million Hack
Bitget, a cryptocurrency exchange, recently suffered a $388 million hack on September 24. In response to the incident, CEO Gracy Chen stated that no customer balance was compromised and promised to make users whole through the Protection Fund.
The fund, valued at over $464 million when it was first announced, has undergone revisions. Initially reported as having less than $200 million in its three wallets, it now stands at $309 million, with 3,705 BTC. This is significantly lower than the initial 5,500 BTC mentioned by Chen.
Despite the discrepancies in the fund's valuation, Bitget attributes the phasing of withdrawals to security concerns rather than a shortfall in customer assets. The exchange has resumed withdrawals for different tokens over several days, with all tokens expected to be available by October 2.
The hack was caused by an attacker exploiting a flaw in a third-party security product to obtain internal credentials. Private keys were not compromised, according to Bitget.