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.

Latest Update on Bitget Security Breach

• Bitget confirmed that attackers stole $387.5 million from its exchange wallets on September 24.
• Withdrawals remain suspended while the company states its protection fund will cover the loss.
• Mandiant and SlowMist are currently investigating the breach.
• CEO Gracy Chen suspects North Korean involvement, citing IP behavior and blockchain activity.
• The breach was detected at 18:31 UTC, with emergency procedures activated shortly after.
• Initial estimates of the loss were revised from $351.6 million to $387.5 million after including affected Zcash and TRON assets.
• Bitget's cold wallets remained secure during the incident.
• Chen indicated that attackers compromised a critical backend system, allowing them to trigger fraudulent transfers.
• A withdrawal-plan announcement is expected by September 26 at 04:00 UTC, though no commitment has been made to reopen withdrawals at that time.

New Developments on Bitget's Security Breach

Bitget, a Seychelles-based cryptocurrency exchange, has temporarily halted withdrawals following an unauthorized transfer of approximately $351.6 million from its hot and warm wallets.

Despite the significant breach, CEO Gracy Chen has assured users that their funds remain secure, citing the exchange’s User Protection Fund, which reportedly exceeds $464 million.

While withdrawals are paused as a precaution, Bitget continues to operate its deposit and exchange functions.

This incident raises concerns about the security and stability of centralized exchanges, which could potentially impact market confidence and liquidity.

Market participants are closely monitoring any further announcements from Bitget regarding the resumption of withdrawals and additional security measures implemented.