Bitget lost $387.5 million after attackers used spoofed transaction data to exploit a backend system connected to a third-party security vendor. The breach affected hot and warm wallets (online and partially connected crypto storage), while cold wallets and private keys were not compromised. Bitget’s User Protection Fund covered the loss, with more than $464 million available before the incident, and the exchange said customer balances and its reserve ratio above 100% remained intact. Withdrawals were paused and later resumed in phases. Bitget launched a recovery bounty offering 5% for freezing stolen assets and another 5% for recovering them, while forensic firms and law enforcement agencies investigate. CEO Gracy Chen compared the recovery outlook with the February 2025 Bybit hack and indicated that most funds may not be recovered. Investigators have identified activity potentially linked to North Korean entities, although attribution remains under investigation. The incident also highlights risks created by third-party dependencies across exchange security systems.