Cryptocurrency exchange Bitget has been rocked by one of the largest security incidents of the year. Attackers siphoned over $351 million from the platform, with initial investigations suggesting the involvement of North Korean hacking groups.
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Attack on Backend Systems and Massive Asset Outflow
The unauthorized transfers occurred on the evening of September 24, affecting a portion of the so-called hot and warm wallets. On-chain analysts detected suspicious movements even before official confirmation from the exchange – within just one hour, over $183 million in various crypto assets such as ETH, USDT, and BNB disappeared, before the total damage climbed to a final $351.6 million.
According to statements from exchange representatives, however, attackers did not gain direct access to private keys. Instead, they infiltrated one of the key backend wallet systems, from where they were able to generate fake transfer data and initiate a legitimate signing process. Furthermore, according to exchange representative Chen, the IP addresses and VPNs used correspond to patterns long utilized by North Korean hacking groups.
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Protection Fund Covers Losses, Withdrawals Temporarily Suspended
The exchange’s response was swift, and to prevent further damage, all withdrawals were temporarily suspended. Deposits and regular trading on the platform remain fully functional, and the possibility of further outflows has been blocked. Withdrawals will be reactivated immediately after a thorough security audit of the entire system is completed.
For users, the crucial news is that they will not lose their funds. Bitget confirmed that all incurred damages will be fully covered by its User Protection Fund, which is valued at over $464 million. It is also a reassuring fact that the most secure cold wallets remained untouched throughout the incident.
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