Bitget Disables Withdrawals After $351.6 Million in Unauthorized Transfers
Bitget suspended withdrawals on Sept. 24 after detecting $351.6 million in unauthorized transfers from hot and warm wallets. The exchange says cold wallets remain secure and its $464 million User Protection Fund covers the loss.
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Story Updates
- Updated Sep 26, 2026, 05:02 AM: Bitget confirms $464 million User Protection Fund covers full $351.6 million loss; investigation ongoing with law enforcement and security firms.
Scope and Containment of the Breach
Bitget detected unauthorized transfers totaling approximately $351.6 million from select hot and warm wallets at 18:31 UTC on September 24, according to Chief Executive Officer Gracy Chen. The company activated emergency response procedures within minutes of discovery. The Defiant reported that Bitget's public API showed withdrawals disabled across all 4,930 asset-network pairs the exchange tracks, though deposits remained enabled and spot trading stayed online.
The breach was contained to the hot and warm wallet layers. Bitget's cold wallets, which typically hold the majority of customer funds, were not compromised, and customer account balances remain accurate according to the exchange's security notice.
Coverage and Operational Status
Bitget said the estimated loss of $351.6 million falls entirely within its User Protection Fund, which currently holds more than $464 million. The exchange is investigating the incident with law enforcement and external security firms while maintaining deposits and trading operations. Withdrawals remain temporarily suspended pending the security review.
The breach pushed September 2024 crypto exchange losses to their highest level since 2021, per CryptoSlate's tracking. Bitget has not yet disclosed how the unauthorized access occurred or provided a timeline for restoring withdrawals.
Why It Matters
For Traders
Withdrawal suspension persists; traders with Bitget holdings face ongoing liquidity lockup and should prepare to move funds to self-custody once access resumes.
For Investors
Exchange maintains operational transparency and claims sufficient insurance coverage, but the incident underscores operational risks inherent to centralized custody.
For Builders
Large breach-and-insurance incidents reinforce the security and settlement guarantees that self-custodial and atomic protocols aim to provide.
This article is for information only and is not financial advice. Read the full disclaimer.
