- Bitget said it restored its Protection Fund to more than $300 million after using the fund following a September 24 security incident.
- The company said the fund covered about $388 million in financial losses, preventing the incident from affecting user account balances.
- Bitget said it replenished the fund two days before its self-imposed deadline.
Bitget said in a release provided to Incrypted that it had restored its Protection Fund to more than $300 million. The company had pledged to return the fund to at least that level within a week of its September 28 commitment.
The exchange said it completed the replenishment two days ahead of the deadline. User balances remained protected throughout the period, while withdrawals were gradually resumed, according to the company.
Fund used after security incident
Bitget created the Protection Fund in 2022 with 5,500 BTC and a minimum value of $300 million. It is intended to provide users with additional financial protection in exceptional circumstances.
Following the September 24 security incident, Bitget allocated assets from the fund to cover financial losses of about $388 million. The company said this kept user account balances accurate and unaffected.
“The past few days have been challenging for our users, so it was important for us to show that the protection mechanisms we built really work,” said Bitget CEO Gracy Chen.
“The Protection Fund was created for exactly these kinds of situations and covered the financial impact of the incident. We stated that we would restore its size to at least $300 million within a week, and we delivered on that commitment. Users can independently verify the fund’s status on the blockchain — just as they have been able to since it was created.”
Investigation and withdrawals
The replenishment comes as Bitget gradually restores withdrawal services and continues investigating the September 24 incident. The company brought in independent cybersecurity firms Mandiant and SlowMist to conduct a forensic investigation, while efforts to trace and recover the funds remain underway.
The Protection Fund is separate from the reserves backing user balances. Bitget’s Proof of Reserves provides information about the assets backing covered user balances, while the Protection Fund serves as an additional layer of financial protection.
Bitget published its latest Proof of Reserves update on September 30. According to the company, each of the 19 assets included in the report had a reserve ratio above 100%.
Users can verify the Protection Fund’s balance on the blockchain through publicly disclosed wallet addresses available on Bitget’s official website.
Source: Incrypted
