In September 2026, a significant cyberattack struck the cryptocurrency exchange Bitget, resulting in the theft of approximately $351.6 million worth of digital assets. The breach occurred through unauthorized transfers from the exchange's "hot" wallets, which are online storage systems that allow for quick access and transactions. In response, Bitget has temporarily halted user withdrawals while it investigates the incident. The exchange has assured users that its "cold" wallets, which store private keys offline and are only connected to the network when needed, remain secure and unaffected. To assist affected users, Bitget plans to use its "User Protection Fund," which holds 5,500 bitcoins valued at around $464 million at the time of the attack. The exchange claims this fund will cover the losses from the hot wallet breach and intends to replenish it afterward. However, some users have expressed doubt about the fund's reliability, pointing out that its existence has not been independently verified. One user posted on X (formerly Twitter), stating, "Your funds are safe, but you can't access them," highlighting concerns about the platform's assurances after the breach. This cyberattack is reported to be the largest in the history of cryptocurrencies in 2026, surpassing the earlier attack on Liquid, which resulted in $319 million in losses in early September 2026. The third-largest attack occurred in April 2026 on KelpDAO, where $292 million was stolen. Bitget, founded in 2018, claims to serve over 120 million users worldwide. However, in 2023, the exchange was placed on a blacklist by France's Financial Markets Authority (AMF) for operating without proper registration. It was removed from the list in July 2026. The incident has raised concerns about the security of cryptocurrency exchanges and the reliability of internal protection mechanisms. While Bitget continues to investigate the breach, users are left waiting for clarity on how their funds will be restored and whether the User Protection Fund can be trusted. The event underscores the growing risks associated with digital asset storage and the need for stronger regulatory oversight in the fast-evolving cryptocurrency industry.