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Bitget, a cryptocurrency exchange, is addressing the aftermath of a significant security breach that resulted in the theft of approximately $387.5 million from its hot and warm wallets. The incident, which occurred on September 24, 2026, exploited a zero-day vulnerability in third-party security software, allowing attackers to access high-level credentials and issue fraudulent withdrawal commands across multiple blockchain networks, including Ethereum, Tron, and the XRP Ledger. Despite the breach, Bitget's cold wallets and private keys remained secure, and the exchange has since suspended withdrawals, gradually restoring them from September 28 onward.
In a recent statement, Bitget criticized certain decentralized finance (DeFi) protocols for their lack of cooperation in tracing the stolen funds. The exchange highlighted NEAR Intents, a cross-chain protocol, as a notable exception, as it successfully blocked over $50 million in laundering attempts related to the hack. NEAR Intents' SHIELD risk-intelligence system managed to freeze $503,000 during ongoing transactions, although some funds were still able to escape prior to intervention. Meanwhile, stablecoin issuers Tether and Circle also took action, freezing between $320,000 and $340,000 linked to the stolen assets.
The incident has reignited discussions about the responsibilities of DeFi protocols in responding to thefts. Bitget's CEO, Gracy Chen, emphasized that refusing to assist in recovering stolen funds represents a choice in itself, raising questions about the ethical implications of such decisions in the crypto space. As investigations continue, theories regarding potential involvement by North Korean-linked actors have emerged, although no specific affiliations have been confirmed by Bitget.
With only about 0.2% of the stolen funds recovered, the incident may prompt increased regulatory scrutiny over how cryptocurrency platforms manage illicit flows. Bitget has assured its customers that losses will be covered by its User Protection Fund, which was valued at over $464 million prior to the breach. The exchange's experience underscores the vulnerabilities associated with third-party software and the ongoing challenges in asset recovery within the cryptocurrency industry.
Source: KLEA News