Bitget Restores $300 Million Fund After $388 Million Security Breach
Bitget announced on September 30 that it has replenished its Protection Fund to more than $300 million following a security breach that took place on September 24. The exchange characterized this fund as an additional layer of security for its customers, distinct from the reserves that back their account balances.
In its statement, Bitget revealed that the fund absorbed around $388 million in losses due to the incident, while ensuring that customer balances remained intact and accurate. The exchange fulfilled its commitment made on September 28 to restore the fund to at least $300 million within a week, completing this process just two days later.
The announcement did not specify the amount of new capital that was injected into the fund. According to Bitget's fund page, the displayed valuation is based on prices recorded at midnight UTC each day.
Bitget's published conditions for the fund allow users to file claims if their accounts are compromised or if assets are lost or stolen due to platform-wide events that are not linked to their own actions or trading behavior. The exchange retains the authority to evaluate claims and investigate affected accounts or assets, with the outcomes dependent on its findings.
It is important to note that eligibility to submit a claim does not guarantee reimbursement for any specific loss. The reported restoration of the fund does not eliminate the assessment process or confirm that compensation has been finalized.
Clarifying Fund Structure and Reserves
Bitget clarified that customer reserves are designated to cover account balances, while the Protection Fund serves as an additional financial safeguard. The exchange's separate reserve report indicates an overall coverage ratio of 131% across 19 assets, each exceeding 100%, based on a snapshot taken at 09:00 UTC on September 29.
A 2023 advisory from the PCAOB's Office of the Investor Advocate highlighted that proof-of-reserves reports are not equivalent to audits, may exclude liabilities or borrowed assets, and cannot guarantee the future availability of assets.
Intelligence Reviewed
Withdrawal access continues to follow its own asset and network timetable. Bitget's service notice on September 30 confirmed that USDT withdrawals were enabled on Ethereum, BSC, Solana, and Tron networks. A subsequent notice outlined the availability of these services on the specified networks.
The exchange's incident timeline indicates that the remaining cryptocurrencies, fiat, and peer-to-peer services are scheduled to be accessible on October 2 at 08:00 UTC. Customers awaiting these services are still subject to a separate timeline from the fund restoration that Bitget has communicated.
