Bitget Rebuilds $309M Protection Fund After $388M Hack: Are Exchange Funds Safe?

Hackers stole approximately $388 million from cryptocurrency exchange Bitget on September 24, 2026, prompting the platform to rebuild its Protection Fund to $309 million and compensate customers for all losses. Bitget froze withdrawals after the breach, resuming them for Bitcoin on September 28, Ethereum on September 29, USDT on September 30, and other cryptocurrencies by October 2. The hackers exploited third-party software vulnerabilities and stole login credentials, but cold wallets remained secure, and proof of reserves showed 131% overall coverage. The Protection Fund, previously around $464 million, dropped below $200 million before being replenished. Most stolen funds may not be recovered, with launderers using privacy tools like Zcash, though some stablecoin issuers froze small amounts.