Exchange Security

Bitget

2026-10-05 04:43:30

Bitget Reverses Course Within Days After Security Breach as Protection Fund Covers Losses and Flows Recover

Bitget said a Sept. 25 security incident ultimately affected about $388 million in assets, but the exchange moved within days to restore withdrawals, deploy its user protection fund, and replenish that fund back to its stated baseline. According to findings cited from SlowMist and Mandiant, the attack path was linked to a compromise of third-party security infrastructure rather than a private key leak, cold wallet breach, or smart contract flaw. CEO Gracy Chen said this was the first incident of its kind in Bitget’s eight years of operation. The exchange said user balances would not be impacted because losses would be absorbed by its protection fund, established in 2022. At the time of the incident, the fund held 5,500 BTC worth more than $464 million, enough to cover the final loss figure. Bitget later said the fund had been replenished to at least $300 million by Sept. 30. The platform also resumed withdrawals in stages across BTC, ETH, USDT, other tokens, fiat, and C2C services according to a published schedule. On-chain data cited in the report showed that after ETH withdrawals resumed on Sept. 29, related hot wallets shifted from net outflows to net inflows. Bitget also reported a 24-hour platform inflow of $231 million on Sept. 30, close to its average daily inflow of $245 million in August, a sign that one-way capital flight did not materialize after the breach.

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Bitget

2026-10-03 08:25:43

Bitget restores withdrawals and sees inflows return days after $388 million security incident

Bitget said roughly $388 million in assets were affected by a Sept. 25 security incident that investigators traced to a zero-day vulnerability in a third-party security product, not a private key leak or cold wallet compromise. The exchange said its user protection fund, established in 2022 and holding 5,500 BTC worth more than $464 million at the time, would absorb the loss, with CEO Gracy Chen pledging to replenish the fund to its $300 million baseline within one week. That refill was completed by Sept. 30. Withdrawals resumed in stages under a previously published timetable, with BTC reopening on Sept. 28, ETH on Sept. 29, USDT-related networks on Sept. 30, and other tokens, fiat and C2C services on Oct. 2. After ETH withdrawals resumed, on-chain data cited in the report showed related hot wallets quickly shifted from net outflows to net inflows. Bitget later said ETH saw about 9,674 in inflows and 9,023 in outflows during the first hour after reopening, for net inflows of around 651 ETH. On Sept. 30, the exchange also reported $231 million in 24-hour inflows and published its 47th proof-of-reserves report, showing a total reserve ratio of 131% across 19 assets.

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Bybit

2026-10-02 13:56:07

Bybit CEO says exchange shifted to zero-trust model after 2025 attack

Bybit CEO Ben Zhou said in an interview with Turkish media outlet Fintechtime that one issue exposed by the exchange’s 2025 attack was its reliance on a third-party service provider and the concentration of too many assets within that provider’s related system. He said Bybit has since overhauled its security policy, moving to a zero-trust model, distributing wallets across different architectures, and strengthening the separation between local and global operations to reduce the risk that a single breach could affect a large amount of assets. Zhou also said Bybit wants to build its Turkey business into a super app covering crypto trading, payments, global transfers, and more investment products.

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Bitget

2026-09-30 16:28:30

Bitget says operations are returning to normal as protection fund reaches $309M

Bitget says it is gradually restoring normal operations after a security breach that led to $388 million in user losses. CEO Gracy Chen said on Wednesday that withdrawals for all tokens will resume on Friday, while access to Bitcoin, Ether, and USDt has already been restored. The exchange also said its Protection Fund has reached $309 million as part of its recovery effort. According to Bitget, the fund was established in January 2022 with 5,500 BTC and was designed to cover user losses in cases not caused by misconduct by the user or the platform itself. Chen said the fund was built for incidents like this and has absorbed the financial impact of the breach. Chen also told Cointelegraph that the company has not ruled out possible perpetrators behind the attack, including the possibility of an inside job or North Korean hackers. Bitget has launched a bounty program offering 5% of frozen funds and 5% of any recovered funds. Separately, blockchain investigator ZachXBT said wallets linked to the hack moved about $3.8 million in Zcash into Ironwood, accounting for roughly 14% of the 18,917 ZEC stolen.

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Coinbase

2026-09-30 03:46:06

Coinbase faces fresh security scrutiny after Ari Paul alleges cover-up of $1 billion in hacks

Coinbase is facing renewed scrutiny after BlockTower Capital founder Ari Paul alleged that the exchange concealed large-scale, repeated hacking incidents that affected at least a dozen institutions and involved more than $1 billion in losses. Paul said his firm lost $25 million several years ago and that the funds were never returned, though he has not yet published verifiable evidence. Coinbase had not issued a public response as of publication. The allegation surfaced after an unrelated dispute on X, where a user accused Coinbase of locking an account and claiming a $1.2 million balance was still owed. Coinbase Base App lead Cobie said the company could not find an account matching the description and suggested the post was being used to drive engagement and promote a low-quality token. The controversy has revived attention on Coinbase’s past security record, including a 2021 SMS account recovery flaw that affected at least 6,000 customers and a 2025 insider-driven data theft case tied to overseas support staff, which Coinbase said could cost between $180 million and $400 million. The report also places the Coinbase dispute alongside recent incidents involving Bitget, Liquid Network and Coldcard, highlighting how reimbursement, frozen withdrawals and legal recourse vary sharply depending on where crypto assets are held.

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Bitget

2026-09-29 01:12:24

Bitget says $388 million theft stemmed from zero-day flaw in third-party security product

Bitget said a recent $388 million security breach was caused by a zero-day vulnerability in a third-party security product, which attackers used to steal high-privilege internal credentials, enter a critical management system, forge withdrawal instructions and bypass risk controls. In a public livestream, CEO Gracy Chen and Greater China head Xie Jiayin said the incident hit hot wallet and warm wallet infrastructure, while private keys and cold wallets were not affected. The exchange said user balances remain intact and losses will be covered in full by Bitget’s user protection fund. According to Bitget’s reconstruction, the attack began with two small test transfers before moving into large withdrawals across Ethereum, XRP, ZEC, BSC, Base, Arbitrum, Optimism and Avalanche. The company said it later isolated affected systems, reset internal credentials, tightened high-sensitivity permissions and added independent verification for all withdrawals. It also said Mandiant and SlowMist are assisting with forensics and on-chain tracing, while a bounty program has been launched to support asset recovery. Bitget said it will not rely on recovered funds as the main safeguard for users. After using the protection fund to absorb losses, the company plans to replenish it to at least $300 million within one week. A separate independent security report is expected within a week, according to the company.

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crypto scams

2026-09-29 04:30:57

2026 crypto scam guide lists 12 common fraud schemes, from fake mainnets to account takeovers

TechFlowPost has published a 2026 crypto scam guide that groups common fraud tactics into five categories and 12 specific schemes, using the recent fake GIWA mainnet incident as a starting point. Written by Changan from the Biteye content team, the piece argues that the most dangerous part of crypto fraud is not only technical trickery, but the constant reshaping of familiar attack surfaces such as X posts, Telegram chats, Google search results, Discord verification flows, wallet history, mobile apps, and exchange recovery processes. The article details several patterns: fake project websites amplified by KOL reposts, fake recruiting and investment outreach that deliver malware through meeting plugins or coding tests, stolen influencer accounts used to launch tokens, Telegram impersonation and code theft, search-engine phishing pages, Discord wallet-drainer verification, fake airdrop emails, address poisoning, fake mainnets and fake bridges, malicious app updates, and exchange account resets backed by forged identity materials. It also cites examples including a fake Hyperliquid site that led to the theft of about 550,000 USDC and the fake GIWA mainnet, where 1,335 addresses sent roughly 767.65 ETH and about 766.25 ETH was drained. Its practical advice is consistent throughout: verify official channels, never share login codes or 2FA credentials, isolate devices from large holdings, review exchange permissions beyond just passwords, and treat every link, signature request, and software download with suspicion.

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Bitcoin

2026-09-29 01:59:39

QCP Flags Bitcoin Pressure as Grayscale Says Compute Is Becoming a Scarce Digital Asset

A broad mix of crypto, macro, regulatory, and infrastructure stories shaped the past 24 hours. QCP said Bitcoin is facing pressure from both geopolitics and a heavy U.S. macro calendar, with key support levels now in focus as traders price downside protection and spot ETF flows show hesitation. In South Korea, the Financial Services Commission is considering a market-making framework for virtual assets, a notable shift given current restrictions under the Virtual Asset User Protection Act. Franklin Templeton expanded its tokenized collateral program to Bybit, allowing users to post tokenized money market fund shares as collateral while the underlying assets continue to generate yield. ETF flows remained strong, with U.S. spot Bitcoin ETFs taking in $2.386 billion last week and spot Ether ETFs adding $690 million, according to SoSoValue. Elsewhere, Tether said it helped freeze nearly $550 million in Iran-linked USDT, Chainlink rolled out CCIP 2 with customizable cross-chain validation, and Grayscale research head Zach Pandl argued that energized, operational compute capacity is emerging as a new scarce digital asset as AI demand outpaces the buildout of power, data centers, chips, memory, and cloud infrastructure.

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