Bitget Confirms $351.6 Million Wallet Breach and Suspends Withdrawals

In Brief:

• Bitget confirmed unauthorized transfers affecting approximately $351.6 million across its hot and warm wallets, while its cold wallets remained secure.
• Onchain transfers carried Ether, USDT, USDC, AVAX, and BNB to a new address before Bitget suspended withdrawals for review.
• Bitget says its $464 million protection fund covers the loss while law enforcement and security firms investigate how transfers occurred.

 

Bitget has suspended cryptocurrency withdrawals following unauthorized transfers affecting approximately $351.6 million across parts of its wallet infrastructure. According to the exchange, its User Protection Fund can cover the estimated loss while investigators determine how the breach occurred.

Unauthorized Transfers Reach Bitget’s Hot and Warm Wallets

Bitget detected the transfers at 18:31 UTC on September 24 and activated its emergency response team within minutes. The company confirmed that the incident affected portions of its hot and warm wallets, which support exchange operations. However, Bitget maintains that customer account balances remain accurate.

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Onchain activity initially showed more than $170 million moving from Bitget-labeled wallets to a newly created address. The transfers involved ether, USDT, USDC, AVAX and BNB, while the receiving address began swapping some assets. Those early observations captured only part of the activity reflected in Bitget’s broader $351.6 million estimate.

The movements initially raised questions about whether Bitget had initiated an internal transfer or lost control of its wallets. Bitget’s security notice resolved that uncertainty by confirming that the transfers were unauthorized. The company has identified and flagged addresses connected with the abnormal activity.

Bitget paused withdrawals while its security team reviews the affected systems and the exchange’s remaining wallet infrastructure. Meanwhile, the company says customers can still deposit assets and trade on its platform during the investigation. Its notice describes the withdrawal suspension as a precaution, although Bitget has not announced a reopening time.

According to Bitget, its User Protection Fund holds more than $464 million, exceeding the exchange’s current loss estimate. The company says the fund covers the full amount and maintains that customer assets remain protected. Bitget has not yet published its promised account of the breach’s cause or the corrective measures.

Bitget Engages Investigators and Promises Incident Report

Bitget has contacted law enforcement and onchain security firms as it tracks the transfers and investigates the affected systems. The exchange has promised hourly updates through its official channels and a full incident report within 24 hours. The report should address the cause of the breach and explain the measures Bitget has taken.

According to chief executive Gracy Chen’s post on X, Bitget will account for its decisions and provide further updates. The investigation will determine when withdrawals can resume, while the report will offer customers a fuller account of the loss.

Bitget Names Outside Investigators and Clarifies Wallet Status

In its latest update on X, Bitget confirmed that independent experts Mandiant and SlowMist are helping investigate the incident. The exchange says withdrawals remain paused during additional security checks and will resume once it considers them safe.

Bitget also distinguished its exchange from Bitget Wallet, which operates on separate infrastructure as a self-custodial service. According to the company, the breach did not affect Bitget Wallet or the assets its users control onchain. Bitget says its exchange platform remains operational, although the withdrawal restriction remains in place.

The company has contacted law enforcement and promised a full incident report explaining the cause and its corrective measures. For customers, that report will provide a fuller account of the transfers, while further security checks will determine when withdrawals resume.

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