How a Third-Party Zero-Day Let Hackers Drain $388 Million From Bitget

Bitget lost $388 million — and days later, CEO Gracy Chen says scammers posing as a major investment team targeted her. 🔥 EPISODE LINK 🔥 https://unchainedcrypto.com/how-bitget-is-chasing-388-million-in-stolen-funds-after-a-zero-day-hack ======================================================================== Thank you to our sponsor! 👉 Visit 1inch to swap tokenized securities, crypto and more. Simple. Secure. Self-custodial. Whatever asset you’re buying - swap it at http://unchainedcrypto.com/go/1inch-yt ======================================================================== Quick favor: We're deciding what Unchained does next; new shows, stream times, what's worth paying for. Our listener survey https://forms.gle/M2GdqNpzM5VskLbT6 takes five minutes, it's anonymous, and I read the write-in answers myself. Everyone who takes it can enter a drawing for a free year of Unchained Premium or Bits + Bips Premium. Open through Sunday, October 18. — Laura ======================================================================== On September 24, attackers used a zero-day in a third-party security product to slip fraudulent withdrawal commands into Bitget's wallet system, pulling out about $388 million across chains from Ethereum and XRP to Zcash. Bitget CEO Gracy Chen joins Laura Shin to reconstruct the attack, from test transfers that stayed under risk thresholds to her team's call to switch wallets back on mid-attack and sweep hot and warm funds into cold storage. She lays out how the exchange's protection fund covered users and why reopened withdrawals showed an early net inflow. Then comes the industry response. Tether, Circle, and NEAR Intents froze funds, THORChain declined her request, and only $632K is frozen so far. Chen also describes scammers impersonating an investment firm to target her after the hack. Her case that "permissionless doesn't mean neutral" puts a hard question to DeFi. Host: 👉 Laura Shin - Founder, CEO and Host of Unchained - https://x.com/laurashin Guest: 👉 Gracy Chen - CEO of Bitget - https://x.com/GracyBitget Timestamps: 🚨 01:50 How attackers used a third-party zero-day to fake withdrawal commands ❄️ 07:15 Why Bitget switched wallets back on mid-attack to sweep funds to cold storage 💧 14:30 1inch Aqua: See how LPs back multiple positions with the same token balance at http://unchainedcrypto.com/go/1inch-sn ⛓️ 15:37 Why the hackers were able to transact even after withdrawals were paused 🧊 19:04 How Tether, Circle, and NEAR Intents froze funds, and why recovery is harder 🕵️ 24:05 ZachXBT's shift on the Bitget hack and his earlier pump-and-dump claims 🛡️ 30:01 NEAR Intents vs. THORChain: does permissionless mean neutral? 💰 41:55 Why Bitget built its protection fund in 2022 and how it covered the loss 🎭 48:17 How scammers posed as an investment team to target Gracy after the hack 📈 01:01:32 A net ETH inflow after withdrawals reopened, and whether the IPO is still on _______________________________________________________ #bitcoin #ethereum #crypto #cryptocurrencies _______________________________________________________ Subscribe to our channel! Website → https://unchainedcrypto.com Unchained Daily Newsletter (FREE!)→ https://unchainedcrypto.beehiiv.com/subscribe/ Unchained X → https://x.com/unchained_pod Apple → https://podcasts.apple.com/us/podcast/id1123922160?ls=1 Spotify → https://open.spotify.com/show/1cJrrfGY1SKBIRn5noKSAf?si=6SI4qIcRTEO7EhOe0V9n4w RSS Feed → https://feeds.megaphone.fm/LSHML4761942757 Unchained: Your no-hype resource for all things crypto!