Bitget Suffers Major Breach, Funds Laundered Through Zcash

Bitget, a cryptocurrency exchange based in Seychelles, has reported a significant security breach resulting in the theft of approximately $387.5 million in various cryptocurrencies. The incident, which occurred on September 24, 2026, is believed to involve North Korean hackers who are now laundering the stolen funds through Zcash's privacy features, specifically its Ironwood shielded pool, making the transactions effectively untraceable.

The breach was first detected by Bitget's security team around 18:31 UTC, initially estimated at $351.6 million before a subsequent review revealed the total loss. The stolen assets included a variety of cryptocurrencies, with XRP accounting for the largest portion at around $157 million. Other affected currencies included Ethereum (ETH), Tether (USDT), USD Coin (USDC), Zcash (ZEC), Binance Coin (BNB), Avalanche (AVAX), and TRON (TRX).

Investigators traced the breach to a zero-day exploit in a third-party security product used by Bitget, which allowed attackers to manipulate transaction data without accessing cold storage or private keys. Bitget's CEO, Gracy Chen, attributed the attack to North Korean actors, suggesting that the total value of suspected North Korean crypto thefts in 2026 has now exceeded $1 billion.

In response to the breach, Bitget suspended withdrawals but has since begun to restore them, citing a User Protection Fund of over $464 million to cover customer losses. However, the remaining funds in transparent addresses are at risk of being laundered further, complicating any potential recovery efforts by law enforcement.

© 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: KLEA News