Bitget CEO Says Recovery of $388M Hack Funds Is Limited
Approximately $1.1 million has been frozen out of nearly $388 million stolen from crypto exchange Bitget in a recent cyberattack, according to CEO Gracy Chen. While the company is working on tracing and recovering assets, it remains unlikely that much will be recovered due to historical trends following similar cryptocurrency hacks. Bitget replenished its Protection Fund back up to $300 million using internal reserves after it was drawn down below $200 million post-hack. The fund now covers user losses without impacting customer balances or passing financial burden onto users, with a reported reserve ratio of 131% as per the latest Proof of Reserves snapshot. Security reports from Mandiant and SlowMist revealed that attackers exploited vulnerabilities in two third-party security products to gain access to Bitget’s production wallet systems. The breach involved sophisticated methods including zero-day exploits and deletion of digital traces, though no specific vendors or countries were identified as responsible.
Topics: crypto exchange funds recovery hacking incident protection fund