CryptoSlate
Bitget says about $387.5 million in assets was transferred to attacker-controlled addresses in a Sept. 24 wallet breach. Withdrawals remained suspended in notices issued through Sept. 25, while deposits and trading continued. The estimate rose from an initial $351.6 million after Bitget included Zcash and TRON transfers in its accounting, not because of a new wave of theft.
On the day of the breach, Sygnum announced that eligible Bitget institutional clients could trade while keeping pledged collateral in the Swiss bank’s custody rather than Bitget’s wallets. The companies have not disclosed how many Bitget clients use the service or whether any Sygnum-held collateral was connected to the incident.
Why it matters
Off-exchange custody can reduce an institution’s direct exposure to an exchange’s wallets. Sygnum says its Protect service holds pledged assets in segregated accounts and that they are bankruptcy remote under Swiss banking law. Clients must onboard with the bank, establish a contractual framework, open a Protect portfolio and pledge eligible assets before receiving trading margin at Bitget.
That separation has limits. Trading still depends on Bitget’s order, margin and settlement processes. Public materials do not establish whether a client can immediately reclaim pledged collateral during an exchange disruption, and the Bitget-specific terms governing release and settlement are not public. They also do not show that any Sygnum client is unable to access collateral in this incident.
Market impact
For ordinary Bitget customers, a visible account balance and continued trading did not mean withdrawals were available. The exchange said it would provide a withdrawal plan or status by Sept. 26 at 04:00 UTC. Bitget also cited its User Protection Fund, which it valued at more than $464 million in its initial notice, and said it had frozen some affected assets with industry partners. It did not quantify the amount frozen or recovered in its Sept. 25 update.
The key tests are a confirmed withdrawal timetable, a clearer loss and recovery accounting, and the terms of any fund disbursement.
Frequently asked questions
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Why did Bitget’s reported breach estimate rise from $351.6M to $387.5M?
Bitget said its Sept. 25 estimate included Zcash and TRON transfers in a fuller accounting. It said the revision did not represent a fresh wave of unauthorized transfers.
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How does Sygnum’s Protect service separate institutional collateral from Bitget wallets?
Eligible clients onboard with Sygnum and pledge assets held in the bank’s custody. Bitget mirrors the balance as trading margin, while the pledged collateral stays outside Bitget’s wallets.
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Does off-exchange collateral remove an institution’s dependence on Bitget?
No. It can reduce direct exposure to Bitget-held wallets, but trading still depends on Bitget’s order, margin and settlement processes.
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What did Bitget say about withdrawals and its protection fund?
Withdrawals remained suspended in notices issued through Sept. 25, while deposits and trading continued. Bitget valued its User Protection Fund above $464 million in its initial notice.
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What details remain undisclosed about Sygnum’s Bitget arrangement?
The companies have not disclosed Bitget client uptake or whether any Sygnum-held collateral was connected to the incident. Public materials also do not establish the terms for collateral release and settlement during an exchange disruption.
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