Bitget's Security Breach Estimated Losses Rise to $387.5 Million Amid Ongoing Investigation

Bitget, the cryptocurrency exchange, has raised its estimated losses from a security breach on September 24 to around $387.5 million. Initially, the loss was pegged at $351.6 million, but further analysis revealed additional unauthorized transfers involving various assets, including Zcash and TRON.

CEO Gracy Chen confirmed that the breach was linked to unauthorized transfers from the exchange's hot and warm wallet infrastructure, while cold wallets remained secure. The incident was detected at 18:31 UTC on the day of the breach, prompting Bitget to temporarily suspend withdrawals as security checks were conducted.

The affected assets include a range of cryptocurrencies such as XRP, ETH, USDT, ZEC, and others across multiple blockchain networks. Bitget is collaborating with independent investigators Mandiant and SlowMist to understand the attack's methodology and has identified the underlying vulnerabilities that were exploited.

In response to the breach, Bitget has launched a Recovery Bounty Program, offering rewards for individuals who assist in freezing and recovering stolen assets. Withdrawals are still paused while the exchange works on security improvements, but deposits and trading activities continue, albeit with some temporary disruptions.

Bitget has assured its users that customer balances are protected and that the losses are covered by its User Protection Fund, which held over $464 million at the time of the incident.