Bitget `not expecting to recover a lot' from $388 million hack, CEO tells CNBC

• Bitget's Protection Fund was drawn down from over $464 million to below $200 million after the hack, then restored to $300 million using the company's own capital rather than customer funds
• Investigation by Mandiant and SlowMist found attackers used a zero-day vulnerability dating to August 31 to compromise third-party security products and bypass normal withdrawal processes
• Withdrawals for bitcoin, ether, and USDT have resumed, with remaining cryptocurrencies, fiat, and peer-to-peer services expected to resume Friday; the exchange maintains a 131% overall reserve ratio

Bitget Hack Summary

Key Incident Details:

Cryptocurrency exchange Bitget suffered a cyberattack resulting in approximately $388 million stolen. CEO Gracy Chen confirmed only $1.1 million has been frozen to date, with minimal expectations for significant fund recovery based on historical cryptocurrency hack precedents.

Financial Impact:

• Bitget's Protection Fund was depleted from $464 million to below $200 million post-hack
• The company replenished the fund to over $300 million using its own capital reserves
• User account balances remained unaffected throughout the incident
• Latest reserve audit (Sept. 29 snapshot) showed 131% overall reserve ratio, with all 19 covered assets backed above 100%

Attack Methodology:

Investigation reports from Mandiant (Google Cloud) and blockchain firm SlowMist revealed attackers compromised two third-party security products before accessing Bitget's production wallet systems. The earliest malicious activity dates to August 31, exploiting a zero-day vulnerability. Attackers bypassed normal withdrawal processes without stealing private keys and deleted traces to obstruct investigations.

Attribution and Response:

While preliminary indicators suggested links to North Korean hacking groups, Chen stated further confirmation is needed. The CEO declined to identify compromised vendors, citing ongoing security risks.

Operational Status:

Withdrawals for Bitcoin, Ethereum, and USDT have resumed. Full services for remaining cryptocurrencies, fiat, and peer-to-peer platforms are scheduled to restart Friday.

Market Implications:

The incident highlights ongoing vulnerabilities in crypto exchange security infrastructure, particularly third-party vendor risks. Bitget absorbed financial losses internally, potentially setting precedent for exchange accountability standards in protecting user assets.