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Home Crypto News Today Market Updates

Bitget CEO Says Spoofed Backend Data, Not Stolen Keys, Triggered the $351.6 Million Hack

Saravana Kumar Mahendran by Saravana Kumar Mahendran
September 27, 2026
in Market Updates
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  • Bitget CEO Gracy Chen said attackers compromised a backend system within the exchange’s wallet infrastructure and spoofed transaction data to trigger its own authorization process
  • Chen said private key compromise has been ruled out and that loss containment is confirmed, with no further unauthorized transfers possible
  • She said cold wallets remain fully secure and that multiple technical teams are working in parallel on remediation, with no firm timeline promised until one can be guaranteed

Bitget CEO Gracy Chen posted on her official X account the exchange’s first detailed account of how attackers moved roughly $351.6 million out of its hot wallet infrastructure a day earlier. “The attacker compromised a critical backend system within our wallet infrastructure, used it to spoof transaction data, and triggered our authorization process to move funds out,” Chen wrote, adding that “private key compromise has been ruled out.”

The distinction matters because a stolen private key and a spoofed authorization process point to very different failure modes. A private key compromise would mean the signing credentials themselves were exposed, a scenario that typically forces an exchange to rotate every key tied to the affected wallets. Chen’s account instead describes attackers manipulating the data an internal approval system trusted, tricking it into approving transfers it should have rejected, while the underlying keys stayed secure the entire time.

On the scope of the damage, Chen wrote that “loss containment is confirmed. No further unauthorized transfers are possible,” though she added that “the specific method of system intrusion remains under active investigation.” That phrasing draws a line between stopping the bleeding, which Bitget says it has done, and fully understanding how the attacker got in, which the company says is still being worked out.

Chen also moved to reassure users directly, writing “user funds are safe. Your account balances are accurate and your assets are protected,” and separately confirming that “cold wallets remain fully secure,” meaning the incident stayed confined to the hot and warm wallet layers used for day-to-day liquidity rather than the offline reserves holding the bulk of customer assets.

On next steps, Chen said “multiple technical teams are working in parallel on system remediation and security hardening,” while declining to commit to a specific restoration date: “we will announce a timeline as soon as one is confirmed. We will not commit to a window we cannot guarantee.” That approach mirrors the hourly-update commitment Bitget made in its original security notice, favoring frequent partial updates over a single delayed statement once every detail is confirmed.

Disclaimer: Cryip's content is strictly for educational and informational purposes and does not constitute financial, legal, or investment advice. Cryptocurrency involves significant risk, and readers assume full responsibility for their own financial decisions. Asset references are never endorsements.

To make complex crypto topics accessible to readers at all experience levels, our team uses AI tools strictly to refine language, correct grammar, and simplify terminology. AI is never used to draft facts, source information, or form conclusions. Every article is fact-checked and approved by a human editor before publication. Read our full AI Use & Content Policy.

Saravana Kumar Mahendran

Saravana Kumar Mahendran

Saravana Kumar Mahendran is a crypto security analyst and blockchain researcher at Cryip, focusing on DeFi protocol exploits, Web3 security systems, and on-chain investigation. His research applies OSINT and fact-checking methodology to security incidents, drawing on certifications in cybersecurity and data analytics (LinkedIn Learning), and DeFi deep-dive training (Binance Academy). His work has been cited by Sherlock, Rekt.news, and Halborn Security.

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