Bitget CEO Admits $388M Hack Recovery Unlikely: 'Not Expecting to Recover a Lot'

Bitget, a major cryptocurrency exchange, has frozen only a minuscule fraction of the $387.5 million stolen in a hack last week, and CEO Gracy Chen told CNBC on Wednesday that the exchange is 'not expecting to recover a lot' of the lost funds. The breach, one of the largest in recent crypto history, has raised fresh concerns about security at centralized exchanges.

In an interview with CNBC, Chen revealed that only a small portion of the stolen assets had been frozen, and that the exchange has since restored much of its protection fund—a reserve set aside to compensate users in the event of such incidents. The hack, which occurred last week, saw attackers make off with approximately $387.5 million in various cryptocurrencies. Bitget has not disclosed the exact mechanism of the attack or the specific assets involved.

The news underscores the persistent vulnerability of crypto exchanges to sophisticated cyberattacks, even as the industry matures. While Bitget's move to replenish its protection fund may help retain user confidence, the limited recovery of stolen funds highlights the challenges law enforcement and exchanges face in tracing and reclaiming digital assets. Global regulators are likely to intensify scrutiny on exchange security practices, and Bitget's handling of the aftermath will be closely watched by investors and peers alike.