Bitget ‘gradually back to usual’ as protection fund reaches $309M
Bitget CEO Gracy Chen said in a Wednesday X post that withdrawals for all tokens would resume on Friday, after a security breach that cost users $388 million, and that access to Bitcoin (BTC), Ether (ETH) and USDt (USDT) had already been restored. She also said the exchange's Protection Fund had reached $309 million and "absorbed the financial impact of the incident."
The phased return of withdrawals marks a partial operational recovery for users whose funds were affected by the breach. According to Chen, the Protection Fund was created for moments like this and absorbed the financial impact of the incident.
The Protection Fund was initially set up by Bitget in January 2022 with 5,500 BTC to reimburse users' potential losses that were "not a result of any misconduct from the user or the platform itself." Chen said Bitget had not ruled out parties potentially responsible for the $388 million attack, including a possible inside job or North Korean hackers, and the company launched a bounty program offering 5% of frozen funds plus 5% of any recovered funds.
rss · Cointelegraph · · Single source
Background, discussion, and references
Market impact
The event transmits to markets mainly through exchange-solvency and custody sentiment: Bitget's own token and its BTC/ETH/USDT withdrawal rails are the directly exposed segments, while the attackers' reported movement of stolen ZEC into a privacy pool draws attention to privacy-asset laundering channels. Broader exchange-security incidents of this size can also weigh on user confidence in centralized venue custody and on stablecoin flows tied to trading venues.
Background
The incident sits within a broader pattern of crypto exchange security breaches, and Bitget's Protection Fund is marketed as an additional layer of resilience alongside its Proof of Reserves. On Wednesday, blockchain investigator ZachXBT reported that wallets tied to the Bitget hack moved about $3.8 million in Zcash (ZEC) into the network's Ironwood pool — roughly 14% of the 18,917 ZEC stolen in the attack. NEAR Intents separately said it blocked $50 million tied to the Bitget hackers.
References
Tags
#bitget#exchange-security#security-breach#protection-fund#withdrawals#zcash