Bitget Restored Its Protection Fund to More Than $300M

• Bitget restored the Protection Fund balance to more than $300 million after the security incident on September 24.
• The fund was used to cover financial losses of about $388 million so that user balances were not affected.
• The exchange met its commitment to replenish the fund two days ahead of the deadline.

Bitget, the world’s largest universal exchange (UEX), has restored its Protection Fund balance to more than $300 million. This was stated in a release provided to Incrypted. 

The company said it fulfilled its commitment to return the fund to its original level within a week after the security incident that occurred on September 24.

Replenishing the fund marked another step in Bitget’s response to the incident. According to the company, user balances remained protected throughout the period, withdrawals were gradually resumed, and the Protection Fund was restored to the minimum level of $300 million.

The fund’s size can still be verified publicly on the blockchain. This gives users direct access to information about the assets held as an additional layer of financial protection.

The Protection Fund was created in 2022 with 5,500 BTC and a minimum value of $300 million. The fund is designed to provide additional protection for users in exceptional circumstances.

After the September 24 incident, Bitget allocated the fund’s assets to cover financial losses of about $388 million. As the company stated, this ensured that user account balances remained accurate and were not affected.

On September 28, Bitget committed to restoring the fund to at least $300 million within a week. The company met this commitment two days ahead of the deadline.

“The past few days have been challenging for our users, so it was important for us to show that the protection mechanisms we built really work,” said Bitget CEO Gracy Chen.

According to her, the fund was restored in the shortest possible time:

“The Protection Fund was created for exactly these kinds of situations and covered the financial impact of the incident. We stated that we would restore its size to at least $300 million within a week, and we delivered on that commitment. Users can independently verify the fund’s status on the blockchain — just as they have been able to since it was created.”

The fund’s replenishment comes as the withdrawal service is being gradually restored and the investigation into the September 24 incident continues.

Bitget brought in independent cybersecurity firms Mandiant and SlowMist to conduct a forensic investigation. Efforts to trace and recover the funds are ongoing.

The Protection Fund remains a separate mechanism from the reserves that back user balances.

Bitget’s Proof of Reserves provides transparency around the assets backing covered user balances, while the Protection Fund serves as an additional layer of financial protection.

On September 30, Bitget published its latest Proof of Reserves update. According to the company, all 19 assets included in the report have a reserve ratio above 100%.

Users can independently verify the status of the Protection Fund via the publicly disclosed wallet addresses on the official website.

Сообщение Bitget Restored Its Protection Fund to More Than $300M появились сначала на INCRYPTED.