Bitget Halts Withdrawals After Hot Wallet Breach Impacting $351.6 Million

Bitget has temporarily stopped all user withdrawals after confirming a breach of its hot wallets that impacted approximately $351.6 million. The exchange emphasized that its cold wallets were not compromised and that the loss falls within its user protection fund, which holds more than $464 million.

Hot wallet breach details

The incident involved the unauthorized access to Bitget’s hot wallets, the portion of the platform’s holdings used for daily transaction processing. The breach resulted in a direct impact on $351.6 million of user assets.

Cold wallets remain secure

Bitget assured users that its cold storage wallets, which store the majority of funds offline, were unaffected by the attack. This separation of hot and cold assets is a standard security practice in centralized exchanges.

User protection fund coverage

The exchange’s user protection fund, valued at over $464 million, is designed to cover losses from security incidents. Bitget stated that the breach falls within the fund’s coverage, indicating that affected users should be compensated from this reserve.

Next steps for users

Bitget has not provided a timeline for when withdrawals will resume. Users are advised to monitor official communications from the exchange for updates on the investigation and the restoration of services.