Crypto exchange Bitget lost $351.6 million to a system breach on Thursday, CEO Gracy Chen announced in a social media post. The CEO said unauthorized transfers occurred from some of the exchange's hot wallets, while cold wallets and user funds remained secure.
Chen stated that Bitget operates a three-tier wallet architecture and the breach affected only a portion of the hot wallet and warm wallet layers. The exchange maintains a user protection fund with over $464 million, she said.
Deposits and trading remain online, but Bitget is temporarily pausing withdrawals until it completes a security review. Chen promised to publish an incident report within 24 hours.
Blockchain Analysis Confirms Movement
Onchain data and independent blockchain researchers flagged unusual wallet movements before the official announcement. Analyst Emmett Gallic at blockchain analytics firm Arkham Intelligence reported that transactions involved three Bitget hot wallets and one cold wallet across multiple blockchains, with funds consolidated into a single address. Assets moved included ETH, BNB, AVAX, and USDT.
Security Infrastructure Explained
Hot wallets remain connected to systems that process transactions and withdrawals, making them more accessible than cold wallets, which are designed to keep signing credentials isolated from internet-connected infrastructure.
The breach represents a significant security incident for the cryptocurrency exchange industry, occurring amid other notable hacks in September.
