🚨 SECURITY ALERT: Bitget Hit by $351.6M Hack — Circle & Tether Freeze Funds
Crypto exchange Bitget suffered a massive $351.6 million exploit following a backend infrastructure breach. Here is a breakdown of what happened, the on-chain movement, and the immediate reaction from stablecoin issuers.
🔍 How the Exploit Happened
Root Cause: Attackers compromised a backend system in Bitget’s wallet infrastructure, spoofing transaction data to bypass authorization checks.
No Key Leak: Bitget CEO Gracy Chen confirmed that private keys were not compromised.
User Safety: Bitget’s $464M+ Protection Fund will fully cover all user losses.
⛓️ On-Chain Actions & Frozen Funds
Blacklist Triggered: On-chain data reveals Circle blacklisted the address labeled "Bitget Exploiter 8" on Etherscan, followed shortly by Tether.
Locked Value: Approximately $318,000 in stablecoins (218,023 USDT and 99,990 USDC) plus 170.47 ETH are now stuck in the frozen wallet.
The Catch: This freeze represents only a small fraction of the total loot. Blockchain firm MistTrack reports exploiter wallets still hold over 63,000 ETH—which cannot be frozen by any centralized issuer.
⚡ Circle Under the Spotlight
Circle’s swift action this time stands in stark contrast to April’s $285M Drift Hack, where critics like ZachXBT called out delayed wallet freezing during large cross-chain transfers. Circle reiterated that it blacklists assets when legally mandated to do so.
👇 What are your thoughts on centralized stablecoin freezing vs. decentralized ETH holdings? Let's discuss in the comments!
#CryptoNews #Bitget #SecurityAlert #Ethereum #USDT #USDC #CryptoSecurity
Crypto exchange Bitget suffered a massive $351.6 million exploit following a backend infrastructure breach. Here is a breakdown of what happened, the on-chain movement, and the immediate reaction from stablecoin issuers.
🔍 How the Exploit Happened
Root Cause: Attackers compromised a backend system in Bitget’s wallet infrastructure, spoofing transaction data to bypass authorization checks.
No Key Leak: Bitget CEO Gracy Chen confirmed that private keys were not compromised.
User Safety: Bitget’s $464M+ Protection Fund will fully cover all user losses.
⛓️ On-Chain Actions & Frozen Funds
Blacklist Triggered: On-chain data reveals Circle blacklisted the address labeled "Bitget Exploiter 8" on Etherscan, followed shortly by Tether.
Locked Value: Approximately $318,000 in stablecoins (218,023 USDT and 99,990 USDC) plus 170.47 ETH are now stuck in the frozen wallet.
The Catch: This freeze represents only a small fraction of the total loot. Blockchain firm MistTrack reports exploiter wallets still hold over 63,000 ETH—which cannot be frozen by any centralized issuer.
⚡ Circle Under the Spotlight
Circle’s swift action this time stands in stark contrast to April’s $285M Drift Hack, where critics like ZachXBT called out delayed wallet freezing during large cross-chain transfers. Circle reiterated that it blacklists assets when legally mandated to do so.
👇 What are your thoughts on centralized stablecoin freezing vs. decentralized ETH holdings? Let's discuss in the comments!
#CryptoNews #Bitget #SecurityAlert #Ethereum #USDT #USDC #CryptoSecurity
