Bitget records $463M in net outflows after hack

Bitget: Bitget is a major cryptocurrency exchange that provides trading, custody, and related services for digital assets across multiple blockchains. The platform maintains a three-tier wallet system with hot, warm, and cold storage to balance liquidity and security. In this news, Bitget is the exchange that suffered a backend system compromise leading to unauthorized transfers from hot wallets and subsequent customer outflows after withdrawals resumed. Industry Response: Bitget activated emergency protocols, suspended withdrawals temporarily, engaged law enforcement and forensic firms, and is restoring withdrawals in phases while using its user protection fund to cover losses. Security Incident: The breach involved exploitation of a third-party security product vulnerability that allowed spoofed transaction data to bypass authorization processes without compromising private keys or cold wallets. Attack Sophistication: The incident followed a pattern of small test transfers to evade risk controls before larger movements, consistent with tactics attributed to sophisticated threat actors in the crypto space.