Suspicious transactions linked to the cryptocurrency platform Bitget have sparked concerns about a potential security breach. Recent blockchain analysis reveals high-value assets being withdrawn from both the exchange’s hot and cold wallets, with a large portion being converted into Ethereum ($ETH).
Initially, activities on the Arbitrum network caught significant attention. A new wallet reportedly acquired 7,111 $ETH in a mere six minutes, using approximately 19.67 million USDT0 from a Bitget hot wallet. These transactions were allegedly executed through UniswapX and 1inch Fusion, with some trades reaching nearly 5% above the market price, while the WETH/$USDC pool price spiked to $2,870 temporarily.
Further blockchain activity suggested that the breach might extend beyond a single wallet or network. According to shared information, three hot wallets and one cold wallet linked to Bitget might have been compromised. Various tokens, including $ETH, AVAX, BNB, $USDC, $USDT, USDT0, and XAUT, were noted to be moved from these wallets.
Reports indicate that the addresses suspected of being involved in the attack are still converting their stablecoins into $ETH. Recent data shows that remaining $USDC and $USDT assets are also being exchanged for $ETH, leading to an estimated total affected fund amount exceeding $170 million.
Nevertheless, around $530 million worth of assets still resides in wallets believed to be impacted. Hence, observers are closely tracking whether further movements occur and if the total losses will escalate.
In the early hours following the incident, social media buzz hinted at a hack surpassing $100 million, although this amount was not immediately verified. As more transactions across various networks and wallets surfaced, the tracked on-chain total escalated beyond $170 million.
The exact cause of the security flaw remains unclear; it is unknown if private keys were compromised or if another aspect of the wallet system was breached.
While there are claims suggesting North Korean involvement in the hacking event, this information remains unverified.
Bitget Takes Steps Following the Security Breach
Recent blockchain activity implies that Bitget has started to manage the situation. About five minutes ago, addresses controlled by the exchange began shifting assets from wallets affected by the attacker to alternative addresses.
These measures are being interpreted as an emergency transfer of funds and a precautionary step for wallets that are yet to be deemed compromised.
*This is not financial advice.