Bitget Confirms $351.6 Million Security Breach, Suspends Withdrawals Amid Investigation

Bitget Confirms $351.6 Million Security Breach, Suspends Withdrawals Amid Investigation

In a shocking turn of events, Bitget, the world’s sixth-largest cryptocurrency exchange by trading volume, confirmed a staggering $351.6 million security breach late Thursday. The exchange has temporarily suspended withdrawals across its platform as it launches an urgent investigation into the incident.

While deposits and trading remain operational, users holding funds on Bitget are left in limbo, as immediate access to their assets is currently unavailable.

What Happened

At 18:31 UTC on September 24, 2026, Bitget’s security systems detected unauthorized transfers from several of its hot wallets. Initial reports indicated suspicious movements ranging from $150 million to $180 million, but the exchange later confirmed the full extent of the breach at $351.6 million. The outflow involved approximately 19 transfers across various assets, including Ethereum (ETH), Binance Coin (BNB), Avalanche (AVAX), XRP, tokenized gold, and stablecoins. Alarmingly, these transfers occurred within a compressed timeframe of less than 20 minutes.

Bitget reassured users that its cold, offline wallets remained uncompromised and that customer account balances continue to display accurately. The company has committed to absorbing the loss on its own balance sheet, rather than passing it on to users.

“Withdrawals are temporarily suspended as a precautionary measure, pending security review,” Bitget stated. CEO Gracy Chen has refrained from providing a specific reopening date, indicating that it could take “hours or days,” but not weeks. The exchange has pledged to provide hourly updates and a comprehensive incident report within 24 hours of the breach.

What Bitget Says About Your Funds

Bitget has emphasized that the full amount of the loss falls within the coverage of its User Protection Fund, which currently holds over $464 million. However, these figures are self-reported and not independently verified. Despite the reported balances appearing normal, users cannot currently withdraw their funds.

Attack Wasn’t Just A Stolen Key

A critical detail in Bitget’s preliminary findings is how the transfers were allegedly authorized. The attacker reportedly compromised a vital backend system within the wallet infrastructure, spoofing transaction data to trigger the authorization process for fund transfers. “No further unauthorized transfers are possible,” Chen assured.

This preliminary account suggests that the vulnerability lay in the system’s authorization process rather than merely in the transaction-signing mechanism. Chen noted that the attack method aligns with known patterns associated with North Korean hacker organizations.

Why Hot Wallets Exist

Hot wallets, which are connected to the internet, allow exchanges to process transactions swiftly. In contrast, cold wallets are kept offline and are more secure but can slow down routine withdrawals. Bitget confirmed that the incident affected part of its online wallet infrastructure while its cold wallets remained secure. This incident underscores the inherent trade-offs exchanges face in balancing accessibility and security.

The breach comes at a particularly costly time for crypto security, following a separate $320 million loss at Liquid Network earlier in September and a nearly $120 million exploit reported in July. September 2026 is now marked as the costliest month for crypto hacks in recent history.

As the investigation unfolds, users are advised to rely on Bitget’s official updates and to be wary of unsolicited messages offering “compensation” or “recovery” services, which are often phishing tactics following major breaches.

Until Bitget publishes its incident report and restores access, the pressing concern for users remains the uncertainty surrounding their funds.