Bitget Restores $300M Protection Fund After Absorbing $388M Breach Loss

Fund Restoration and Breach Impact

Bitget announced on Sept. 30 that its Protection Fund has been replenished to more than $300 million, two days after the exchange pledged to restore the backstop within a week. The fund absorbed approximately $388 million in losses stemming from a security incident on Sept. 24, according to the exchange. Bitget emphasized that customer account balances remained accurate and unaffected throughout the episode.

The Protection Fund operates as a separate safeguard distinct from the reserves that back user balances. Its valuation is calculated using asset prices at midnight UTC each day. Bitget did not disclose the amount of fresh capital injected to reach the $300 million threshold.

Claim Framework and Reserve Snapshot

Under the fund's published conditions, users may submit claims when accounts are compromised or assets are lost through platform-wide events not attributable to their own actions. The exchange retains the right to investigate each claim, and eligibility does not guarantee reimbursement. The restoration of the fund does not alter that assessment process or imply that compensation has been completed.

A reserve report published for a snapshot taken at 09:00 UTC on Sept. 29 showed an overall collateralization ratio of 131% across 19 covered assets, each above 100%. A 2023 advisory from the PCAOB's Office of the Investor Advocate cautions that proof-of-reserves reports are not audits, may omit liabilities or borrowed assets, and cannot assure subsequent asset availability.

Phased Withdrawal Restart

Withdrawal services are returning on a staggered schedule. USDT withdrawals reopened on Sept. 30 across Ethereum, BNB Smart Chain, Solana, and Tron. The exchange's incident timetable targets Oct. 2 at 08:00 UTC for the restoration of remaining cryptocurrency withdrawals, fiat services, and peer-to-peer functionality. Customers awaiting those services face a separate milestone from the fund restoration announced today.

Source: CryptoSlate