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Invest Independently confirmed2 publishers 2 min read Published

Bitget traces its $388 million loss to a flaw in a third-party security product

Bitget says attackers may have used a flaw in a third-party security product to get internal credentials and forge $388 million of withdrawals. The account puts vendor software that can reach a withdrawal system inside an exchange's counterparty risk, alongside its own wallet controls.

The Investor · Invest desk

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Illustration accompanying Bitget traces its $388 million loss to a flaw in a third-party security product
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What happened

  • Unauthorized transfers began at about 18:31 UTC on September 24 across multiple blockchains, drawing on part of Bitget's hot and warm wallet infrastructure.
  • Bitget's latest reconciliation ties the transfers to 12 wallet addresses associated with its hot or warm wallets.
  • Chief executive Gracy Chen hosted a live AMA on September 28 to address the incident and the phased resumption of withdrawals.
  • Independent investigation reports from Mandiant and SlowMist became available on September 30.
  • CertiK counted roughly $769 million lost across 99 crypto security incidents in September.

Why it matters

  • Who's exposed exposure Bitget has not named the vendor or product, so users of other exchanges cannot yet check whether the same security software sits near their platform's withdrawal system.
  • What doesn't add up contradiction Bitget says the vulnerability was remediated but also keeps the affected functionality disabled pending the vendor's fix, so the flaw is closed at Bitget by switching a feature off and may stay open wherever else the product runs.
  • Who has to decide decision Bitget is directing its fixes at third-party deployment, internal access and withdrawal verification; key storage, which held, is not on the list.

Bitget's account of the $388 million theft starts from what held [3]. The exchange says private-key compromise has been ruled out and that its cold wallets on every chain were unaffected [12][13]. The coins left anyway. According to Bitget, the attacker appears to have used high-level internal credentials to send withdrawal commands to the wallet system, and the system executed transfers that bypassed existing risk controls [2].

The vendor comes in at the credential step. Bitget wrote that the attacker "may have exploited a vulnerability in a third-party security product to potentially obtain high-level internal credentials" [1]. The sentence carries two hedges. Cointelegraph's report drops both: in its version, the company said attackers exploited the flaw to obtain credentials and forge withdrawal commands [4]. A related Cointelegraph headline says SlowMist traced the hack activity to an Aug. 31 zero-day exploit [19]. If that date holds, 24 days passed between the exploit and the transfers [20].

If CertiK's September tally includes Bitget, as Cointelegraph's headline on third-quarter losses passing $1 billion implies [5], this one incident is about half of the month's $769 million [21]. Exploits made up $734 million of September's losses, across 58 incidents [8].

The Mandiant and SlowMist findings can cut three ways. If they confirm the vendor flaw and the product is widely deployed, the exposure extends to every exchange running it. If they show the stolen credentials alone were enough to move $388 million, the vendor supplied the entry and Bitget's own withdrawal checks allowed the loss. Bitget's description of transfers that bypassed its risk controls points partly that way [2]. The third is that the figure moves: Bitget says the $388 million estimate may be updated as tracing continues [3].

I think the first two readings are both true, or rather, the second is what makes the first expensive. A vendor bug that leaks credentials costs $388 million only when those credentials can tell the wallet system to move funds past its risk controls [3][2]. The view fails if the forensic work traces the credentials to an insider or a phished employee instead of the vendor product. Bitget says both firms are still supporting the investigation [18].

What to watch

  • Whether the Mandiant and SlowMist reports confirm the third-party product as the source of the credentials, or trace them to an insider or another route.
  • Whether Bitget or the vendor names the product, and whether any other exchange discloses running it.
  • Revisions to the $388 million estimate as Bitget's tracing and recovery work continues.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence50
Adoption
Not scored
Hype gap+15
Incentives60
Confidence50
Why these scores

Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    "may have exploited a vulnerability in a third-party security product to potentially obtain high-level internal credentials"

    Reported Supported Source: Bitget incident pageView cited source
  2. [2]

    The attacker appears to have used the credentials to impersonate authorized activity and send fraudulent withdrawal commands to the wallet system, resulting in abnormal transfers that bypassed existing risk controls.

    Reported Supported Source: Bitget incident pageView cited source
  3. [3]

    The amount affected is estimated at approximately $388 million, and the estimate may be updated as transaction classification and asset tracing continue.

    Reported Supported Source: Bitget incident pageView cited source
  4. [4]

    The company said attackers exploited a vulnerability in a third-party security product to obtain internal credentials and forge withdrawal commands.

    Reported Supported Source: CointelegraphView cited source
  5. [5]

    Cointelegraph headline: Bitget's $388M hack pushes Q3 crypto security losses past $1B.

    Reported Supported Source: CointelegraphView cited source
  6. [6]

    At approximately 18:31 UTC on September 24, 2026, unauthorized transfers were made across multiple blockchains from a portion of Bitget's hot and warm wallet infrastructure.

    Reported Supported Source: Bitget incident pageView cited source
  7. [7]

    CertiK recorded roughly $769 million in losses across 99 security incidents in September.

    Reported Supported Source: CertiK, via CointelegraphView cited source
  8. [8]

    Across 58 incidents, exploits accounted for $734 million, or nearly 96% of September's losses.

    Reported Supported Source: CertiK, via CointelegraphView cited source
  9. [9]

    The transfers involved 12 wallet addresses associated with hot or warm wallets, based on Bitget's latest reconciliation.

    Reported Supported Source: Bitget incident pageView cited source
  10. [10]

    Bitget notified the relevant third-party vendor and disabled the affected functionality pending completion of a fix.

    Reported Supported Source: Bitget incident pageView cited source
  11. [11]

    Bitget is strengthening controls around third-party product deployment, internal access, withdrawal verification and abnormal-activity monitoring.

    Reported Supported Source: Bitget incident pageView cited source
  12. [12]

    Based on the investigation to date, private-key compromise has been ruled out.

    Reported Supported Source: Bitget incident pageView cited source
  13. [13]

    Bitget operates a three-tier wallet architecture of hot, warm and cold wallets; cold wallets across all chains were not affected.

    Reported Supported Source: Bitget incident pageView cited source
  14. [14]

    On September 30, independent investigation reports from Mandiant and SlowMist became available.

    Reported Supported Source: Bitget incident pageView cited source
  15. [15]

    On September 28 at 07:30 UTC, Bitget CEO Gracy Chen hosted a live AMA to address the security incident, the phased withdrawal resumption and community questions.

    Reported Supported Source: Bitget incident pageView cited source
  16. [16]

    Bitget's incident page does not name the third-party vendor or the security product involved.

    Reported Supported Source: Bitget incident pageView cited source
  17. [17]

    Bitget said the affected systems were isolated and the underlying vulnerability was remediated.

    Reported Supported Source: Bitget incident pageView cited source
  18. [18]

    Mandiant and SlowMist continue to support the independent forensic investigation.

    Reported Supported Source: Bitget incident pageView cited source
  19. [19]

    A related Cointelegraph headline: SlowMist traces Bitget hack activity to Aug. 31 zero-day exploit.

    Reported Insufficient Source: Cointelegraph related-article headlineView cited source
  20. [20]

    About 24 days separate the Aug. 31 zero-day exploit SlowMist reportedly identified and the Sept. 24 transfers.

    Derived Insufficient
  21. [21]

    Bitget's $388 million is about half (roughly 50%) of CertiK's $769 million September loss tally, if that tally includes it.

    Derived Insufficient

Sources

2 independent publishers whose own reporting we read for this story.

  1. bitget.com

    1 article · September 28, 2026

    Was Bitget Hacked? Bitget Security Incident: Timeline, Impact & Response
  2. cointelegraph.com

    1 article · October 1, 2026

    Bitget’s $388M hack pushes Q3 crypto security losses past $1B

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