- Crypto exchange Bitget’s Protection Fund has recovered to $309M.
- The exchange has resumed withdrawals following the $388M breach.
- $1.1M in stolen funds has been frozen, while the exchange reports a 131% reserve ratio.
After the $388 million security breach, Bitget is now slowly returning to normal operations. After the company’s protection fund hit $309 million, it has reportedly restored withdrawals for major assets, including Bitcoin, Ether, and USDT.
Bitget Protection Fund Reaches $309M
According to a press release, Bitget’s Protection Fund has recovered to around $309 million amid the crypto exchange’s efforts to restore normal operations after the security breach. The fund was created to help users who lose funds in security breaches or similar situations where they are not responsible for the loss.
Initially, the fund was launched in January 2022 with 5,500 BTC. As per Bitget’s statement, the fund was designed to give users financial support when unexpected incidents affect users. CEO Chen noted that the fund helped ease the financial impact of the latest security incident.
Unveiling the $388M Security Breach
Notably, the Bitget security breach resulted in the loss of a massive $388 million, with the exchange still investigating the matter. The company has already ruled out several possibilities, including the involvement of an insider or North Korean hackers.
The security breach resulted in about $388 million in user funds being stolen from Bitget. The exchange is still investigating the incident and has not confirmed who was behind the attack.
Exchange resumes withdrawals
Following the hack, Bitget is bringing back its withdrawal services. First, it restored access to major tokens like Bitcoin, Ethereum, and USDT. On September 29, ETH withdrawals across Ethereum, BSC, Arbitrum, Base, and Optimism were resumed. The withdrawals of USDT on Ethereum, BSC, Solana, and Tron restarted on September 30. Other tokens, fiat withdrawals, and P2P services were scheduled to resume on October 2.
Bitget Freezes $1.1M in Stolen Funds
In one of the latest developments in the ongoing investigation into the Bitget hack, the team has frozen about $1.1 million of stolen funds. But the frozen funds haven’t been returned to the exchange, and the company hasn’t revealed how much it recovered.
Further, CEO Gracy Chen stated that she is not optimistic about recovering a large portion of the stolen funds. She pointed to other similar crypto hacks and their recoveries to further strengthen her points. However, she believes that exchanges are responsible for showing investors how they protect them when security incidents occur. She stated,
“We restored the Fund using Bitget’s own capital. The financial impact is being absorbed by Bitget rather than passed on to our users.”
(adsbygoogle = window.adsbygoogle || []).push({});Maintaining 131% Reserve Ratio After Hack
As part of its recovery processes after the hack, Bitget is also highlighting its reserves. The company’s reserve ratio is currently at around 131%. All 19 assets covered in the recent Proof of Reserve report were backed by more than 100% reserves. It is also important to note that the Protection Fund is separate from the reserves supporting customer balances and remains publicly verifiable on-chain.
Related: Bitget Hack – Are Crypto Exchanges Safe?
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