Gracy Chen, CEO of cryptocurrency exchange Bitget, has indicated she is not optimistic about the prospects for freezing and recovering the approximately $388 million (~530 billion won) in funds stolen in the recent security breach.
According to cryptocurrency media outlet CoinTelegraph on the 29th (local time), Chen referenced last year’s Bybit hack, which involved $1.5 billion (~2 trillion won), to explain the practical difficulties of recovering stolen funds. “About a year has passed, but frozen funds account for only about 3.5% of the total damage, and even that has not actually been recovered,” she said.
This hack marks Bitget’s first security breach in eight years. Chen identified a third-party vulnerability as the cause of the incident. Attackers reportedly swapped $351.6 million (~480 billion won) worth of the stolen Ethereum (ETH) for Bitcoin (BTC) through THORChain.
Bitget is currently offering a 5% bounty to parties that assist in freezing and recovering the stolen funds. However, Chen’s remarks suggest that despite these efforts, the actual recovery rate could remain very low.
Withdrawal Resumption and Security Enhancements
Bitget has been resuming withdrawal functionality in phases following the hack. BTC withdrawals on the Bitcoin network resumed first on the 28th, with Ethereum withdrawals scheduled for the 29th. The exchange plans to normalize services sequentially by asset.
BTC withdrawals processed in the first hour after resumption reached 4,098 BTC. This figure, disclosed directly by Chen, reflects the pent-up demand from users that accumulated during the withdrawal suspension. However, this is operational data self-reported by the exchange, and independent on-chain verification has not yet been conducted.
The company also announced significant strengthening of its security management framework. Access privileges to highly confidential systems are being reviewed, and multi-approval requirements have been implemented for critical operations. Third-party verification procedures have also been added for withdrawal requests.
Additionally, affected systems were isolated, credentials were reset, and the exchange worked with third-party vendors to disable related security features until vulnerability patches were completed. The exploited vulnerability has already been fixed, and no new fraudulent transfers have been confirmed since the incident was contained, according to the exchange.
Possible North Korean Hacker Involvement
The possibility that North Korean-linked hacker groups were involved in this hack has been raised. North Korea-affiliated hacking organizations have repeatedly targeted cryptocurrency exchanges for large-scale fund theft and have shown a pattern of laundering stolen funds through decentralized trading protocols such as THORChain.
The Bybit hack was also attributed to North Korean hacker organizations. Of the $1.5 billion stolen at the time, frozen funds remain at just 3.5% of the total even a year later. Chen’s reference to this case appears to reflect her assessment that Bitget’s stolen funds are likely to follow a similar trajectory.
Recovering stolen cryptocurrency funds is technically extremely difficult. Attackers immediately disperse funds across multiple wallets and use mixers or cross-chain bridges to evade tracking. Protocols like THORChain, which enable chain-to-chain asset swaps without intermediaries, are particularly susceptible to exploitation as money laundering channels.
The Challenge of Restoring Exchange Trust
Restoring user trust is Bitget’s top priority following this incident. The fact that 4,098 BTC was withdrawn within the first hour after resumption demonstrates the significant level of user anxiety. While the exchange’s ability to process large-scale withdrawal demand normally is a positive signal, some observers note that additional disclosure regarding reserve levels is needed.
The company previously disclosed a loss of $352 million (~480 billion won) related to this security incident. This served as the backdrop for users moving quickly to verify asset accessibility.
The exchange’s next critical milestone is the resumption of Ethereum withdrawals. Following that, independent on-chain verification of withdrawal figures and additional disclosure of post-hack reserve levels are expected to be key concerns for users and the market.
Bitget has emphasized that this was its first security breach in eight years, highlighting the robustness of its usual security framework. However, given the scale of funds stolen, explaining this as a one-time incident alone is unlikely to dispel market concerns. The effectiveness of the security enhancements the exchange has announced will be key to restoring trust going forward.
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