Key facts
- Bitget's protection fund has reached $309 million.
- A security breach resulted in $388 million in user losses.
Cryptocurrency exchange Bitget is gradually returning to normal operations after a security breach led to $388 million in user losses. CEO Gracy Chen stated that the exchange's protection fund, now at $309 million, absorbed the financial impact, and withdrawals are set to resume on Friday.
The incident highlights the ongoing risks associated with cryptocurrency exchanges and the importance of robust security measures and customer protection funds in mitigating the financial impact of hacks on users.
Bitget is gradually returning to normal operations following a security breach that led to the loss of $388 million in user funds, according to an announcement by CEO Gracy Chen. Withdrawals for all tokens are slated to resume on Friday, with access to Bitcoin (BTC), Ether (ETH), and USDt (USDT) already restored. The exchange's 'Protection Fund,' established in January 2022 with 5,500 BTC, has grown to $309 million and was utilized to absorb the financial impact of the incident. The fund is intended to reimburse users for potential losses not resulting from their own misconduct or platform issues, such as security breaches. Chen indicated that investigations into the responsible parties are ongoing, with possibilities including an inside job or North Korean hackers. In response, Bitget has initiated a bounty program, offering 5% of any frozen funds and an additional 5% for any recovered funds. Separately, blockchain investigator ZachXBT reported that wallets associated with the Bitget hack moved approximately $3.8 million worth of Zcash (ZEC) into the network's Ironwood pool, representing about 14% of the total stolen ZEC.
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