NEAR Intents' SHIELD Blocks Over $50M in Stolen Funds from Bitget Hack

NEAR Intents, a cross-chain intent-based swap protocol, showcased its rapid response capabilities by blocking over $50 million in attempted laundering following the September 24 breach of Bitget, which resulted in a loss of approximately $388 million.

Utilizing its built-in risk-intelligence layer known as SHIELD, NEAR Intents detected suspicious transactions almost immediately. Among the flagged transactions, only about $166,000 managed to bypass the system, while another $503,000 was frozen mid-execution. This swift action prevented the stolen assets from re-entering the market through NEAR Intents' infrastructure.

How SHIELD Operates

SHIELD functions by gathering signals from various intelligence and compliance providers to identify transactions associated with known exploits or suspicious behavior. NEAR Intents distinguishes itself by allowing permissionless transactions while filtering out stolen assets, thereby maintaining a neutral stance.

Impact on Bitget and Its Users

Bitget's CEO, Gracy Chen, praised NEAR Intents for its role in disrupting the laundering process. Despite the recovery efforts, the $50 million blocked does not compensate for the overall loss incurred by Bitget, but it does hinder the hackers' ability to cash out.

Technical Achievements

The ability to freeze assets mid-execution during a cross-chain swap indicates advanced engineering within the SHIELD protocol, as most systems are designed to complete transactions in an atomic manner. This capability underscores the sophistication of NEAR Intents' technology.

New Developments on Bitget Hack

• Investors withdrew over 4,000 bitcoins worth over $334 million in one hour after Bitget resumed withdrawals.
• Bitget CEO Gracy Chen reported that withdrawals have stabilized following the initial rush.
• Hackers stole $388 million in crypto by targeting Bitget's hot wallets.
• Bitget's attack method was linked to known patterns of North Korean hacker organizations.
• Bitget has stated that no cold storage funds were affected during the hack.
• The company is using its own funds to replenish its protection fund, which dropped below $200 million after the incident.
• This incident is the first security breach of this nature for Bitget in eight years.
• Bitget processed $811 million in transactions in the past 24 hours and is the sixth largest exchange by trading volume.

New Facts from Bitget's Latest Update

• Bitget reported a 131% overall reserve ratio in its latest Proof of Reserves snapshot taken on September 29, 2023.
• The exchange holds approximately $1.31 for every $1 in user deposits.
• The snapshot occurred five days after a significant security breach on September 24, 2023, where around $387.5 million was drained from hot and warm wallets.
• Cold wallets and user balances were unaffected by the breach, and losses will be covered by Bitget’s User Protection Fund.
• This report marks the first time Bitget’s Proof of Reserves program covered 19 digital assets, expanding from the original four.
• NEAR led the reserve ratios at 181%, followed by XAUT at 172%, SOL at 157%, USDC at 154%, BTC at 142%, ETH at 110%, and BNB at 104%.
• Bitget's Proof of Reserves disclosures have been consistent for 47 consecutive months since December 2022.
• The User Protection Fund is currently valued between $382 million and $464 million, sufficient to cover the losses from the September 24 breach.