Bitget says it is gradually returning to normal operations after a security breach caused $388 million in user losses, with its protection fund reaching $309 million and withdrawals for all tokens expected to resume Friday.
Withdrawals and fund response
Bitget CEO Gracy Chen said the cryptocurrency exchange had already restored access to Bitcoin, Ether and USDt for users. Withdrawals for all tokens are scheduled to resume on Friday, according to her Wednesday post on X.
Chen said the company’s Protection Fund had absorbed the financial impact of the incident. The fund stood at $309 million during the recovery effort, although the source material does not specify whether that figure represents its final size or a valuation at a particular point in time.
The fund was established by Bitget in January 2022 with 5,500 BTC. Its stated purpose was to reimburse users for potential losses that were not caused by misconduct by either the user or the platform. Bitget said the funds were intended to be available for immediate deployment when required.
“The Protection Fund was created for moments like this and absorbed the financial impact of the incident,” Chen said, according to reporting by Cointelegraph.
Investigation and movement of stolen assets
Bitget has not identified who was responsible for the $388 million attack. Chen told Cointelegraph that the company was still considering several possibilities, including an insider operation and the involvement of North Korean hackers. The material does not establish either explanation as the cause of the breach.
The exchange has launched a bounty program linked to the investigation. It is offering 5% of frozen funds and 5% of any funds that are recovered.
Blockchain investigator ZachXBT reported on Wednesday that wallets connected to the Bitget hack transferred about $3.8 million worth of Zcash, or ZEC, into Ironwood’s pool. The transfers represented approximately 14% of the 18,917 ZEC reported as stolen in the attack.
The movement of assets adds a further complication to the recovery process. Cryptocurrency transactions are recorded on public blockchains, allowing investigators to follow transfers between wallets, although the source material does not say whether the Zcash transfers have been recovered or frozen.
Why the response matters
A protection fund is a reserve designed to help compensate users for specified losses. In this case, Bitget says the reserve allowed it to absorb the financial effect of the breach while it worked to restore account access and withdrawals.
The incident also highlights the operational importance of exchange withdrawal systems. Restoring access to major assets such as Bitcoin, Ether and USDt is an initial step, while the planned resumption of withdrawals for all tokens would mark a broader return to normal service. Bitget’s investigation, bounty program and efforts to trace the stolen assets remain ongoing.
Moneyiar market picture
Moneyiar data at 09:18-09:19 on October 1, 2026, showed mixed moves among the tracked crypto assets:
- Compound (COMP): $24.4313575314, down 4.44% over 24 hours and up 5.07% over seven days.
- FUNToken (FUN): $0.0079521341, up 12.15% over 24 hours and 2.38% over seven days.
- Alchemy Pay (ACH): $0.0061098865, down 0.57% over 24 hours and up 9.4% over seven days.
- Loaded Lions (LION): $0.0015460405, up 2.1% over 24 hours and 4.2% over seven days.
