An abrupt withdrawal pause raised questions for millions of users, as the company moved to reassure customers about what happens next.
Cryptocurrency exchange Bitget temporarily suspended withdrawals after approximately $351.6 million worth of cryptocurrency was stolen. The company said users’ funds were safe and that it would cover the losses from its own reserves.
As mentioned by Reuters
According to Bitget CEO Gracy Chen, on Thursday, September 24, the exchange detected unauthorized transfers from several of its crypto wallets. The company then temporarily suspended withdrawals.
Withdrawals have been temporarily suspended for security reasons, not because of a lack of funds.
– Gracy Chen
Chen also said that all customer funds were intact and that the exchange would cover the losses with its own funds. On Friday, September 25, she confirmed this in a written response.
Bitget says it has more than 120 million users and is one of the world’s largest cryptocurrency exchanges.
Cyberattacks on cryptocurrency exchanges
Cryptocurrency exchanges have faced cyberattacks and thefts for many years. Last year, $1.5 billion worth of cryptocurrency was stolen in a hack of the Bybit exchange. The U.S. Federal Bureau of Investigation linked the attack to North Korean hackers. North Korea regularly denies involvement in cyberattacks and cryptocurrency thefts.
According to officials, criminals can quickly transfer stolen cryptocurrency across borders, bypassing the traditional financial system. Bitget is investigating the circumstances of the incident.