Bitget reports 131% reserve ratio days after $387.5 million wallet breach
In brief
- Bitget's September 29 Proof of Reserves snapshot showed a 131% overall reserve ratio.
- Asset coverage expanded to 19 from four; every asset held a ratio above 100%.
- NEAR led at 181%; BNB was lowest of the assets Crypto Briefing named, at 104%.
- CEO Gracy Chen said cold wallets and user balances were unaffected by the September 24 breach.
- No recovery or compensation timeline for the $387.5 million loss has been made public.
Nineteen assets, all above 100%
The snapshot was the first in which Bitget's Proof of Reserves program covered 19 digital assets, up from the four core assets it originally tracked. Every one of them came in above 100%, per the report.
NEAR led at 181%. The gold-backed token XAUT followed at 172%, with SOL at 157%, USDC at 154% and BTC at 142%. Among the assets Crypto Briefing listed, ETH (110%) and BNB (104%) had the thinnest margins, though both still cleared full backing. Figures for the other 12 assets weren't reported.
Bitget's earlier snapshots this year ranged from 122% to 135%, and a mid-September report showed 135%. Crypto Briefing wrote that the dip to 131% likely reflected operational fallout from the breach. That's the outlet's own analysis, not a finding in the report.
The September 24 breach
Approximately $387.5 million in unauthorized transfers left Bitget's hot and warm wallets on September 24, according to Crypto Briefing. CEO Gracy Chen confirmed that cold wallets and user balances were unaffected and said the losses would be covered by the exchange's User Protection Fund, as reported by Crypto Briefing.
That distinction matters when you're reading the reserve number. Cold wallets (which store assets offline) weren't compromised, and Crypto Briefing said the snapshot mainly reflects cold wallet holdings and total asset backing.
Crypto Briefing valued the User Protection Fund at between $382 million and $464 million. It launched with a minimum initial commitment of $300 million.
The exact recovery and compensation timeline hasn't been made public.
How the reserves are checked
Bitget's system uses a Merkle Tree structure, which lets users check that their own assets are included in total reserves without exposing anyone else's data. The exchange has published monthly disclosures since December 2022, according to Crypto Briefing, a series that started the month after FTX collapsed and wiped out roughly $8 billion in customer funds.
Frequently asked questions
What does Bitget's 131% reserve ratio mean?
According to Crypto Briefing, the 131% ratio in Bitget's September 29 Proof of Reserves snapshot means the exchange held roughly $1.31 for every $1 in user deposits. All 19 tracked assets had ratios above 100%.
How can Bitget users verify their assets are in the reserves?
Bitget's Proof of Reserves system uses a Merkle Tree structure. It lets users check that their own assets are included in total reserves without revealing other users' data.
Were Bitget user balances affected by the September 24 breach?
About $387.5 million was drained from Bitget's hot and warm wallets on September 24, according to Crypto Briefing. CEO Gracy Chen confirmed that cold wallets and user balances were not affected. No compensation timeline has been made public.
