The chief executive officer of cryptocurrency exchange Bitget has reported a gradual and steady return to normal operational status following a devastating security breach that resulted in the massive loss of $388 million in user funds. The incident, which sent shockwaves through the digital asset community, prompted an immediate and extensive emergency response from the exchange’s leadership, security teams, and industry partners to contain the damage and secure remaining assets.
In an official post shared on the social media platform X on Wednesday, Bitget CEO Gracy Chen announced that withdrawal services for all remaining tokens would officially resume on Friday. This update follows the successful restoration of access to user balances for major cryptocurrencies, specifically Bitcoin, Ether, and USDt, marking a critical milestone in the exchange’s path toward full recovery. As part of these comprehensive recovery efforts, Bitget also confirmed that its dedicated "Protection Fund" has rebounded significantly, now standing at an impressive $309 million.
The Protection Fund was originally established by Bitget in January 2022 with an initial allocation of 5,500 Bitcoin. The reserve was specifically designed and capitalized to act as a financial safety net to reimburse users for potential losses that were determined not to be the result of any misconduct or operational failure on the part of the individual user or the platform itself. According to company policy, this would presumably encompass severe security breaches and unforeseen exploits. Furthermore, the company previously stated that these capital reserves were structured to be available for instant deployment whenever the need arises during critical emergencies.
"The Protection Fund was created for moments like this and absorbed the financial impact of the incident," said Chen, emphasizing the vital role the safety reserve played in maintaining the exchange’s solvency and bolstering user confidence during the crisis.
In discussions with Cointelegraph earlier in the week, CEO Gracy Chen revealed that the exchange’s internal and external investigative teams still had not ruled out certain high-profile parties who may have been responsible for orchestrating the $388 million attack. The ongoing investigation is exploring multiple complex theories, including the distinct possibility of an inside job involving malicious actors within the organization, as well as state-sponsored threat actors such as North Korean hacking groups, which have frequently targeted cryptocurrency infrastructure in recent years. In response to the sophisticated breach, Bitget launched a specialized bounty program aimed at incentivizing security researchers, white-hat hackers, and industry sleuths, offering a reward of 5 percent of the frozen funds alongside an additional 5 percent for any successfully recovered assets.
The aftermath of the exploit has also drawn intense scrutiny from prominent blockchain intelligence analysts and security firms across the decentralized finance ecosystem. On Wednesday, independent blockchain investigator ZachXBT reported via public tracking channels that various crypto wallets directly tied to the Bitget hack had moved approximately $3.8 million worth of Zcash into the network’s Ironwood pool. These suspicious transactions represented roughly 14 percent of the total 18,917 Zcash tokens that were stolen during the initial malicious attack.
The efforts to mitigate the fallout have extended beyond Bitget’s direct internal measures, with other prominent blockchain entities stepping in to assist. Notably, NEAR Intents reported that it successfully blocked $50 million in suspicious transactions and funds directly tied to the hackers responsible for the Bitget breach, demonstrating a coordinated industry-wide defense mechanism against large-scale digital asset thefts. As Bitget finalizes its operational restorations and continues working alongside international law enforcement and blockchain security experts, the exchange remains focused on tracking the remaining stolen funds and reinforcing its infrastructural security to prevent future vulnerabilities.
