Bitget has reported a security breach involving $351.6 million in digital assets, with CEO Gracy Chen confirming unauthorized transfers from some of the exchange's hot wallets. The incident prompted a temporary suspension of withdrawals while the platform conducts a security review, although deposits and trading remain operational.
In a statement on X, Chen said Bitget's cold wallets and user funds remained safe, attributing the incident to a breach affecting portions of its hot and warm wallet infrastructure. She added that the exchange's user protection fund held more than $464 million, presenting it as a financial resource available to protect users.
The reported exposure is substantially higher than the initial figures identified by independent blockchain researchers. Early on-chain monitoring flagged approximately $183 million in transfers from wallets associated with Bitget, while Arkham Intelligence analyst Emmett Gallic identified movements involving three hot wallets and one cold wallet across multiple blockchains. The assets included ETH, BNB, AVAX and USDT0, with funds subsequently consolidated into a single address.
The difference between the initial on-chain estimates and Bitget's reported $351.6 million exposure highlights the difficulty of assessing the full scope of a security incident while transactions are still being investigated. The exchange has not yet published its promised incident report, leaving the precise attack mechanism and final financial impact subject to further confirmation.
The distinction between hot, warm and cold wallets is central to the incident. Hot wallets remain connected to systems that facilitate transactions and withdrawals, making them more accessible but also more exposed to potential compromise. Cold wallets are designed to isolate signing credentials from internet-connected infrastructure. Bitget's statement that its cold wallets remain secure is an assertion from the company pending further technical disclosure.
The exchange's user protection fund, reported at more than $464 million, is another important factor for account holders. However, the existence of the fund does not independently establish the final amount of recoverable assets or the precise terms under which compensation would be provided. Those details will depend on the investigation and Bitget's subsequent disclosures.
The incident comes amid a difficult period for crypto security. The Liquid Network reportedly suffered a $320 million breach earlier in September, although the attackers in that incident described themselves as white-hat hackers. If Bitget's reported exposure is confirmed, the event could rank among the largest cryptocurrency security incidents of 2026.
Market reaction has so far been concentrated in Bitget's native token. BGB fell sharply after reports of the breach emerged, but partially recovered, remaining down 2.9% at the reported time. Bitcoin and ether showed more limited declines of approximately 0.29% and 0.2%, respectively, over the preceding 24 hours.
The immediate focus for users and the broader market is the promised incident report, which Chen said would be published within 24 hours. Investors will also be watching for confirmation of the final loss amount, the status of withdrawals, the security of remaining reserves and any recovery or compensation arrangements. Until those details are available, the full financial and operational consequences of the breach remain uncertain.
