Bitget’s calculation for funds moved to attacker-controlled wallets has been updated from $351.6 million to $387.5 million. The new total incorporates previously uncounted transactions on Zcash and TRON networks.
The new estimate is approximately 83.5% of its User Protection Fund, based on the exchange’s stated valuation of more than $464 million. To restore the fund above its stated $300 million commitment, Bitget would need to replenish the reserve.
Protection Fund and Bitcoin Value
Bitget established the Protection Fund in 2022 to cover losses from hacks and other extreme events. The fund holds 5,500 Bitcoin and is separate from the reserves backing customer balances. Its dollar value fluctuates with Bitcoin, averaging $382 million in August and ranging from $345.3 million to $441.5 million.
The fund’s value is not tied to the disclosed wallet exposure, and there is no uniform international formula to determine the size of a voluntary crypto exchange protection fund. South Korea’s rules require virtual asset providers to obtain insurance or hold reserves equal to at least 5% of customer assets stored outside cold wallets.
Investigation and Recovery Efforts
Mandiant and SlowMist are assisting with the investigation and security checks. Bitget has identified the attack path and remediated the underlying vulnerability, with no further unauthorized transfers possible. Some of the transferred assets have been frozen through coordination with exchanges, blockchain projects, and security firms.
Bitget has also launched a recovery bounty, offering eligible participants 5% of assets they help freeze or recover. The status and timing of restored withdrawals will be announced by 04:00 UTC on September 26. CEO Gracy Chen said Bitget holds more than $1 billion of its own assets, but it did not disclose how any payments would be divided between the Protection Fund and its own assets.
Comparison to Other Exchanges
Binance maintains a SAFU reserve valued at approximately $1 billion, which is held in Bitcoin. Like Bitget’s fund, its dollar value changes with the cryptocurrency’s price. The comparison between the two exchanges’ protection funds is complex, as the size of the fund is not directly tied to the assets held in online wallets or customer liabilities.
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