Bitget CEO ‘not very optimistic’ about full recovery of $388M lost in security breach
Gracy Chen, CEO of crypto exchange Bitget, expressed uncertainty over the company’s ability to fully freeze or recover $388 million in crypto lost during a security breach last week. Drawing parallels with Bybit’s 2025 $1.5 billion hack where only a small fraction of assets were frozen, Chen highlighted the challenges in asset recovery. Bitget responded with a bounty program and collaborated with partners to freeze stolen funds and mitigate user losses.
Background and scale of the incident
In February 2025, the crypto exchange Bybit suffered a hack resulting in approximately $1.5 billion in Ether stolen. However, only about $80 million was frozen and recovered by the company, which Bitget CEO Gracy Chen cites as a reference point for evaluating recovery chances after Bitget’s recent breach.
Bitget’s 2026 hack, involving a loss of around $388 million, ranks among the largest security breaches in the crypto industry recently, alongside the $320 million Liquid Network exploit in September 2026, the $615 million Ronin Bridge hack in 2022, and the $611 million Poly Network hack in 2021.
Bitget’s response measures
Following the breach, Bitget paused withdrawals to contain losses and subsequently launched a bounty program offering 5% rewards for frozen and recovered funds respectively.
The exchange progressively resumed withdrawals starting with Bitcoin and then Ethereum. Collaborations with ecosystem partners proved crucial: NEAR Intents helped freeze over $50 million in assets linked to the attack, while stablecoin issuers Tether and Circle blacklisted wallets involved, freezing $318,013 in USDT and USDC.
Assessment of potential perpetrators
Chen disclosed that Bitget initially suspected North Korean actors based on IP addresses associated with certain VPN usage common to groups from the Democratic People’s Republic of Korea. Nevertheless, the company has not ruled out the possibility of an insider job, keeping investigations open to all scenarios.
Why it matters
This incident highlights the scale and complexity of combating major crypto breaches in the industry, where even proactive freezing efforts recover only a small fraction of stolen assets. Bybit’s experience illustrates the ongoing challenge exchanges face in reclaiming digital assets post-hack. Bitget’s launch of a bounty program and collaboration with ecosystem partners represent evolving strategies to mitigate losses and engage broader community support. Furthermore, it underscores the critical need for enhanced security measures and transparency within the crypto space, alongside the risks posed by potential insider involvement in such attacks.
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