Crypto Exchange Bitget Exploited for $351M as Hacker Swaps Funds for Ethereum

Crypto exchange Bitget confirmed a $351.6 million security breach after attackers drained several hot wallets, moved assets across chains, and converted stablecoins into Ethereum during rapid transactions.

Bitget Confirms $351.6 Million Hot Wallet Breach

Bitget detected unauthorized transfers at 18:31 UTC on September 24, CEO Gracy Chen said. Within minutes, the security teams went into emergency mode and limited withdrawals during the investigation.

The attack has impacted certain portions of Bitget’s hot and warm wallet infrastructure, said Chen. She added that company cold wallets remained secure throughout the incident.

“User funds are safe,” says a security notice published on X by Chen. She said Bitget’s protection fund would cover the entire reported loss.

The fund currently holds more than $464 million, according to Chen. Bitget said account balances remain accurate while deposits and trading continue operating.

Hacker Converts Stablecoins Into Ethereum

On-chain researchers first noticed unusual transfers from wallets linked with Bitget. Approximately $183 million was transferred before the greater total loss was later revealed by Bitget.

A new wallet was created and $19.67 million in USDT0 was deposited into it from an address belonging to Bitget. Within a few minutes, the wallet commenced the purchase of 7,111 ETH via decentralized trading services.