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

40 mins ago Updated 32 mins ago

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Highlights

Bitget confirmed a $351.6 million breach after unauthorized transfers hit several hot and warm wallets.
Attackers converted stablecoins into Ethereum while moving stolen assets across multiple blockchain networks and addresses.
Bitget suspended withdrawals, citing an ongoing review, while its protection fund covers reported customer losses.

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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.

According to researchers, the buyer paid about 5% above Ethereum’s prevailing market price. The fast trading was to help shift the stablecoins into ETH, which issuers cannot freeze directly.

Additional transfers included ETH, USDT, USDC, AVAX, BNB, and tokenized gold. Multiple transactions involved transferring funds to a new wallet starting with “0xe410.”

The address provided for tracking is 0x770b10b273fC44Fe9197D6bF20F145c2e98463Ee.

Withdrawals Suspended During Security Review

Bitget temporarily suspended all withdrawals while its security team investigated the affected wallet systems. During the review period, deposits and trading services were still available.

The exchange was able to detect suspicious addresses and alert the law enforcement and blockchain security firms. Bitget also said it would continue monitoring movements linked with the stolen assets.

Chen said Bitget plans to release frequent updates while investigators examine the breach. A full incident report will cover the attack method and planned security changes.

The company hasn’t revealed exactly how the breach was carried out. Funds are still being traced between the addresses and swaps, and blockchain networks.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.