Bitget halts withdrawals after detecting unauthorized transfers from some hot and warm wallets, affecting ~$351.6M; CEO Gracy Chen says "user funds are safe"

Withdrawals from Bitget are currently blocked, preventing users from accessing their funds.

Cryptocurrency exchange Bitget has reported unauthorized transfers totaling approximately $351.6 million from its hot and warm wallets. The incident, which occurred on September 24, 2026, saw assets including ETH, USDT, USDC, AVAX, and BNB moved to a single newly created address within about an hour. CEO Gracy Chen stated that company cold wallets remain secure and assured users that their funds are safe, emphasizing that the loss is covered by Bitget's User Protection Fund, which has over $464 million. The exchange's security systems detected the unauthorized transfers, prompting an immediate emergency response. Initial on-chain analysis revealed a significant portion of the drained funds was quickly swapped for ETH on the Arbitrum network using decentralized exchanges at a premium price, indicating an effort to move assets rapidly. Bitget has since confirmed the hack and users have reported withdrawal issues.

The hack of Bitget's hot wallets, resulting in a loss of over $350 million, underscores the persistent security vulnerabilities within centralized cryptocurrency exchanges. Despite assurances of user fund safety and coverage by a protection fund, such incidents erode trust and highlight the risks inherent in storing digital assets on third-party platforms. The rapid movement and conversion of stolen assets to a more liquid cryptocurrency like ETH, utilizing decentralized exchanges at a premium, demonstrates sophisticated tactics employed by attackers to obfuscate the trail and maximize profit, posing an ongoing challenge for cybersecurity teams.

This event is likely to intensify scrutiny on Bitget's security infrastructure and risk management practices, potentially impacting its standing in the competitive crypto exchange market. Investors and users will likely demand greater transparency and enhanced security measures to prevent future exploits. The incident also serves as a stark reminder for the broader industry to continuously invest in advanced security technologies, robust incident response plans, and potentially explore more decentralized custody solutions to mitigate the risks associated with centralized storage of digital assets.