Bitget pauses withdrawals after $352 million crypto theft
Bitget temporarily suspended customer withdrawals after detecting unauthorized transfers from several wallets worth about $351.6 million. CEO Gracy Chen said user funds are safe and that the loss is covered by Bitget's User Protection Fund, which holds more than $464 million. The Seychelles-based exchange, which serves over 120 million users, described the withdrawal freeze as a security precaution rather than a liquidity problem.
Bitget, a Seychelles-registered exchange with more than 120 million users, froze customer withdrawals after detecting unauthorized transfers from multiple wallets. The missing assets were valued at about $351.6 million. CEO Gracy Chen said customer funds remain safe and that Bitget's User Protection Fund, holding over $464 million, will cover the loss. The exchange called the pause a security measure, not a response to a funding shortfall.
The incident follows the February 2025 Bybit breach, where roughly $1.5 billion was stolen and the FBI linked the attack to North Korean hackers. Such cases highlight centralized exchanges as targets, because stolen crypto can be moved quickly across blockchains, though public ledgers can help investigators trace it.
Customers of large exchanges may feel uncertainty when withdrawals pause, even if funds are said safe. If protection fund covers losses, retail users could avoid direct financial harm, but trust in centralized crypto platforms may weaken. Investigators and exchanges may face pressure to trace stolen assets, while the broader public could see renewed debate over security and regulation.