Bitget loses $388M after DPRK hack; was Coinbase hacked too?

Bitget faces a $388M loss after a hacking incident linked to North Korea's Lazarus Group, raising security concerns for other exchanges like Coinbase.

In a shocking revelation today, the Bitget exchange announced a staggering loss of $388 million due to a hacking incident attributed to North Korea's notorious Lazarus Group. As concerns mount about security vulnerabilities within crypto platforms, questions arise about other exchanges, particularly Coinbase.

What Happened with Bitget?

On September 24, Bitget reported that its security systems had detected “unauthorized transfers involving a limited number of hot wallets.” The aftermath of this breach led to a temporary suspension of withdrawals, although the exchange reassured users that their funds remained protected under its User Protection Fund, which held $464 million at the time.

How Did the Hack Occur?

Bitget did not delve into specific details immediately, but online investigations quickly pointed to the Lazarus Group as the likely perpetrator. Bitget CEO Gracy Chen stated in a livestream that the attack mirrored techniques used by DPRK-linked hackers. He explained that the hackers exploited a zero-day vulnerability in a third-party security product to gain elevated access to internal credentials, facilitating fraudulent withdrawal commands.

What Are the Implications of the Attack?

The hackers managed to make off with various tokens, including ETH, USDT, USDC, and a notable $83 million worth of XRP. Following the breach, Bitget launched a bounty initiative aimed at stakeholders who could help recover stolen funds, offering 5% rewards for any funds frozen or recovered.

Is Coinbase Facing Similar Hacking Claims?

Amidst the fallout from the Bitget incident, a separate narrative emerged regarding Coinbase. Claims surfaced alleging that Coinbase had concealed more than $1 billion in hacking incidents, prompting a heated social media debate. While Coinbase firmly denied these allegations, their silence on the specifics of the purported hacks has left some in the crypto community questioning the integrity of its security measures.

What’s Next for Bitget and Other Exchanges?

As Bitget works diligently to recover from this exploit, they have targeted a phased resumption of withdrawals by October 2. The incident serves as a stark reminder of the potential pitfalls in crypto security. With exchanges like Bybit previously establishing success through initiatives like the LazarusBounty, it brings to light the vital need for robust security measures throughout the industry.

Key Takeaways

• Bitget lost $388 million following an exploit by North Korea's Lazarus Group.
• A zero-day vulnerability in a third-party security product allowed the hackers access to high-level internal credentials.
• Coinbase faces scrutiny due to claims it concealed over $1 billion in hacks.
• Bitget has initiated a bounty program to encourage the recovery of stolen funds.
• The crypto industry is reevaluating security measures following these incidents.

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