Bitget has begun a phased resumption of withdrawals after a $388 million exploit, saying it has patched the vulnerability and that all losses will be covered by a user protection fund.
The exchange didn't give a specific timeline for when the remaining withdrawal limits would be lifted, but it confirmed that the vulnerability is now fixed and that the protection fund will absorb the full $388 million hit. No user funds will be affected by the shortfall.
What happened and how the exchange responded
The exploit, which targeted the exchange's systems, resulted in a $388 million loss. Bitget moved quickly to patch the flaw and has now started allowing a limited number of withdrawals as it works to restore normal operations. The exchange is treating the incident as a contained event, with the user protection fund stepping in to cover the entire amount.
The phased approach means not all users can access their funds immediately. Bitget hasn't detailed the criteria for the rollout, but the process is underway. The exchange's decision to cover losses through its protection fund is a direct response to the scale of the exploit, which ranks among the larger exchange breaches this year.
Why the protection fund matters
User protection funds are a common feature on major exchanges, designed to shield customers from losses due to hacks or operational failures. By committing to cover the full $388 million, Bitget is signaling that its fund has the capacity to handle a loss of this size. That's a critical detail for users deciding whether to keep assets on the platform.
The exchange hasn't disclosed the current balance of the fund or how the payout will affect its reserves. What it has said is that the fund will fully cover the incident, meaning users won't bear the loss. That's a stronger commitment than some exchanges have made in similar situations, where losses were sometimes socialized or partially recovered through negotiations.
What users can expect next
Withdrawals are resuming in phases, but Bitget hasn't said how long the full process will take or which users will be able to withdraw first. The exchange also hasn't provided a breakdown of how the $388 million was lost or which assets were involved. Those details could matter for users trying to assess the risk of leaving funds on the platform.
For now, the immediate crisis appears to be contained. The vulnerability is patched, withdrawals are moving, and the protection fund is on the hook for the full amount. But the lack of a firm timeline leaves an open question: when will all users regain full access to their funds, and will the exchange face any regulatory scrutiny over the incident?
Bitget hasn't announced any regulatory inquiries or third-party investigations. The exchange is handling the aftermath internally, at least for now. Users waiting on withdrawals will be watching the phased rollout closely, and any further delays could test confidence in the platform's recovery.
