Customers Withdraw $463 Million from Bitget Following Massive Crypto Hack

Customers withdrew approximately $463 million worth of crypto from Bitget in a single day. The massive outflow follows last week’s hack, in which $388 million was stolen.

The withdrawals are picking up now that Bitget is gradually restoring customers’ access to their funds. For the crypto exchange, this immediately poses a new test of trust.

In the 24 hours leading up to Tuesday, customers withdrew a net total of approximately $463 million from Bitget. According to DefiLlama, this is the largest daily outflow since the platform began tracking crypto exchange reserves four years ago.

The outflow began after Bitget partially reopened withdrawals. Bitcoin withdrawals resumed on Monday, followed later by Ethereum and USDT. According to the exchange, other cryptocurrencies, fiat currency services, and peer-to-peer trading will follow on October 2.

Bitget currently holds approximately $5.7 billion in reserves. In just one day, an amount equivalent to more than 8 percent of its current reserves was withdrawn.

According to Bitget, the gradual resumption of withdrawals is an additional security measure. The exchange emphasizes that the restrictions are not the result of a shortage of customer assets.

The protection fund that Bitget used to reassure customers after the hack has also shrunk significantly. According to Bitget, the fund was worth approximately $464 million before the attack. Currently, the three associated wallets hold less than $200 million.

According to CEO Gracy Chen, the fund is being used to cover the financial losses from the hack. Bitget plans to replenish the fund with its own capital to more than $300 million. This is expected to happen within a week.

More details have since emerged about how the attackers were able to strike. According to Chen, the vulnerability lay in security software provided by a third-party vendor. This allowed the attackers to obtain internal login credentials and send fraudulent withdrawal requests to Bitget’s wallet system.

These transactions bypassed existing security controls. According to Bitget, only portions of the hot wallets and warm wallets were affected. The company stated that the private keys and cold wallets remained out of the attackers’ reach.

Meanwhile, the investigation into the perpetrators continues. Bitget is collaborating with Google subsidiary Mandiant and blockchain security firm SlowMist on this matter.

Earlier, Chen pointed to signs that could indicate North Korean involvement. According to Bloomberg, external security researchers also see indications of a possible North Korean link.

However, it has not yet been determined whether North Korea is actually behind the attack. Chen emphasizes that these are preliminary indications that are still under further investigation.