Bitget Says User Protection Fund to Cover All Losses From Hot Wallet Security Incident
Summary
- Bitget said it will cover losses from the recent hot wallet security incident through its user protection fund.
- Bitget said its protection fund currently holds 5,500 Bitcoin (BTC), worth about $464 million at market prices.
- The company said losses from the hot wallet incident will be borne by the protection fund after an assessment process, and that it plans to replenish the fund afterward.
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Bitget said it will cover losses stemming from a recent hot wallet security incident through its user protection fund.
In a post on its official X account on Sept. 25, the company said the Bitget Protection Fund was set up for situations like this. It added that the fund currently holds 5,500 Bitcoin, worth about $464 million at market prices.
Bitget said the wallet addresses for the protection fund are fully disclosed, allowing anyone to verify the fund's holdings on-chain. The fund is operated to protect user assets from risks affecting the platform as a whole, including cybersecurity incidents.
The company said losses from the latest hot wallet incident will be covered by the protection fund after an assessment process. It added that it plans to replenish the fund after it is used for compensation.
Details on the scope of compensation and eligibility conditions will be announced separately.
