Cryptocurrency exchange Bitget has restored its protection fund amounting to $300 million following a recent hack. The protection fund, also known as the Protection Fund, was established in 2022 and initially contained 5,500 BTC. After the incident on September 24, when crypto assets worth $176 million were stolen, Bitget decided to restore the fund. As a result, the total amount in the protection fund now stands at $388 million. The protection fund is intended for additional resources and is not related to reserves that may be devalued by clients. Bitget CEO Grace Chen stated that the Protection Fund is not related to reserves that are devalued by clients and serves to supplement them.
Additionally, Bitget plans to conduct regular authenticity checks of its funding. Currently, over 30 days, the fund was required to demonstrate its reserves at 100%. In response to the hack, Bitget is also collaborating with Mandiant and SlowMist to investigate the incident. This step is aimed at identifying security breach pathways and preventing similar cases in the future. The cryptocurrency exchange aims to ensure maximum security and confidence for its users.
The fund was restored to ensure the safety of clients' funds and to further prevent potential hacks. Scheduled Proof of Reserves checks will help guarantee that the funds on the platform are fully backed. According to management, this measure creates an additional level of protection that can enhance users' trust in the platform. Over 28 days, Bitget plans to ensure full funding corresponding to the issued funds. Bitget is actively working on addressing the consequences of the hack and maintains connections with leading cybersecurity companies to improve the security of its services. The importance of these measures underscores the need to protect users' assets and increase transparency in the exchange's operations. At this stage, Bitget is preparing for security improvements to boost the trust and peace of mind of its clients. Ultimately, the cryptocurrency exchange's goal is to prevent similar incidents in the future and provide users with confidence in the reliability of their investments.
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