Bitget confirmed a security breach on Sept. 24, with attackers draining approximately $351.6 million from the exchange's hot and cold wallets across multiple blockchains. The incident prompted Bitget to pause withdrawals.
Bitget CEO Gracy Chen said major exchanges no longer intentionally commingle customer funds. Chen credited the collapse of FTX with forcing the industry to strengthen asset segregation.
Bitget maintains a publicly verifiable User Protection Fund holding over $464 million, exceeding the $351.6 million drained in the hack. The exchange also holds more than $1 billion in Bitget-owned assets, segregated from customer funds.
Chen emphasized that user assets are backed one-to-one and verifiable through proof-of-reserves and Merkle Tree data, providing transparency into the exchange's holdings.
Chen has previously said many offshore exchanges outside the top 10 may not survive future bear markets, noting that downturns force all players back to fundamental principles of security and transparency.
