Bitget resumes Bitcoin withdrawals as hacker swaps ETH via THORChain
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Crypto exchange Bitget is resuming Bitcoin withdrawals after a security breach that compromised nearly $388 million in assets. The attacker is reportedly moving stolen Ether through the decentralized protocol THORChain. Bitget suspended withdrawals after the Sept. 24 incident affecting its hot and warm wallets, while cold wallets remained secure. The exchange plans to resume Ethereum and USDT withdrawals soon as security checks continue.
Why it matters
The source highlights ongoing challenges in halting illicit asset flows following large-scale crypto thefts. Bitget’s phased resumption of withdrawals and its call for THORChain to block attacker addresses underscore industry difficulties in addressing stolen funds once moved through cross-chain decentralized protocols. THORChain’s emergency halt mechanism, which affects the entire network rather than specific addresses, illustrates limitations in selectively freezing funds.
Key context
The breach compromised parts of Bitget’s hot and warm wallet infrastructure but left cold wallets unaffected. The stolen amount was revised upward from $351.6 million to $387.5 million after including transfers via Zcash and Tron. THORChain allows swapping assets across blockchains but lacks a native functionality to blacklist individual addresses, restricting its ability to block attacker-linked funds. Bitget’s CEO Gracy Chen confirmed no priority withdrawal access for any users during the resumption process.
Key numbers and entities
Bitget, a crypto exchange compromised on Sept. 24; $387.5 million in assets stolen, including Bitcoin, Ether, USDT, Zcash, and Tron tokens; THORChain, the decentralized swap protocol involved in moving stolen funds; Bitget CEO Gracy Chen; blockchain data firm Arkham; blockchain analysis platform Lookonchain.
What remains unclear
The source does not specify how Bitget is enhancing security to prevent future breaches or the exact timeline for resuming all asset withdrawals. It is also unclear what specific actions THORChain or other protocols might take in response to the stolen assets moving through their systems beyond network halts. The long-term impact on Bitget’s customers and the recovery options for stolen funds remain unspecified.