CryptoSlate
Bitget said a $351.6 million wallet breach bears hallmarks of North Korean hacking groups, but the attribution has not been independently confirmed. The exchange is working with Mandiant and SlowMist to investigate and trace the stolen assets. XRP accounted for the largest loss on a single network, Bitget CEO Gracy Chen said.
Why it matters
A loss equal to the full initial estimate would consume about 76% of Bitget's User Protection Fund, which holds 5,500 BTC valued at more than $464 million. The final draw could be smaller if assets are frozen or recovered, and the fund's dollar value can change with Bitcoin's price.
Bitget says cold wallets remained secure and its separately operated self-custody Bitget Wallet was unaffected. Chen said the exchange has more than $1 billion in proprietary assets, will replenish the protection fund after covering the incident, and maintains 1:1 backing for customer funds. The company has not said how much it will draw from the fund or other resources.
Market impact
The breach affected ETH, XRP, BNB, AVAX, USDT, USDC and other assets across Ethereum, XRP Ledger, Arbitrum, Avalanche, Optimism, BNB Chain and Base. Bitget said some blockchain foundations confirmed freezes of addresses linked to the attacker. Onchain analyst Specter separately linked stolen XRP to funds from the $24 million AFX hack, attributed to the North Korea-linked TraderTraitor cluster; that connection remains under investigation.
Bitget's Sept. 17 proof-of-reserves report showed a 135% aggregate reserve ratio across 19 assets, but it predates the breach and does not show the exchange's post-incident position. Withdrawals remain suspended during additional security checks. Chen said Bitget will announce a reopening window when it can do so with confidence, without setting a timetable.
Frequently asked questions
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How much of Bitget's protection fund could the breach consume?
A loss equal to the full $351.6 million estimate would amount to about 76% of the fund, valued at more than $464 million and holding 5,500 BTC.
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Has Bitget's breach been confirmed as a North Korean attack?
Bitget said the activity bears hallmarks of North Korean hacking groups, but the attribution has not been independently confirmed and remains under investigation.
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Which assets and networks were affected?
The breach affected ETH, XRP, BNB, AVAX, USDT, USDC and other assets across Ethereum, XRP Ledger, Arbitrum, Avalanche, Optimism, BNB Chain and Base.
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What could reduce Bitget's final loss?
Some blockchain foundations have confirmed freezes of addresses associated with the attacker. Successful freezes or recoveries could reduce the final loss from the initial $351.6 million estimate.
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When will Bitget resume withdrawals?
Withdrawals remain suspended during additional security checks. Bitget has not set a timetable and says it will announce a reopening window when it can do so with confidence.
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