Reports: Bitget Confirms Breach Loss Rises to $387.5M as Funds Move
CIE News ·
Centralized cryptocurrency exchange Bitget has revised its confirmed loss upward to $387.5 million following an investigation into a hot-wallet security breach. The updated total incorporates additional unauthorized transfers of Zcash and TRON assets detected by the exchange. According to Bitget, the compromise did not involve the direct theft of private keys; instead, an intruder penetrated a backend wallet-service system to generate forged transfer requests. The platform confirmed that its cold reserves remained completely unaffected by the intrusion, preserving the core of customer holdings. Following the unauthorized activity, on-chain tracking showed the attacker moving approximately 54 million XRP, valued at around $83 million, across several secondary accounts. Because the native XRP Ledger does not support a ledger-level asset freezing mechanism, those transfers cannot be halted directly on-chain. Conversely, stablecoin issuers Circle and Tether intervened rapidly by blacklisting designated illicit addresses containing a combined $318,000 in USDC and USDT, successfully immobilizing those particular funds. Bitget stated that it has resolved the underlying backend vulnerability and established a phased withdrawal resumption plan set to begin on September 28. Leadership reiterated that all affected user assets are fully covered by the platform's User Protection Fund, which currently holds over $464 million. The incident highlights the ongoing security challenges surrounding backend authorization systems and the complexities involved in tracing and recovering native blockchain assets across diverse networks.