Swiss bank Sygnum offers bank-held trading collateral to Bitget institutional clients following $387.5M breach, while retail withdrawals remain frozen
Bitget announced a wallet breach on September 24, resulting in approximately $387.5 million in assets being transferred to attacker-controlled addresses. Withdrawals on the exchange remained suspended through September 25, with Bitget promising to announce a withdrawal plan or status by September 26 at 04:00 UTC. On the same day of the breach, Swiss bank Sygnum announced that Bitget's institutional clients could trade against collateral held at Sygnum, rather than placing it in Bitget's wallets. This arrangement aims to keep pledged assets in segregated accounts off the bank's balance sheet, reducing direct custody exposure to Bitget's own wallets and addressing concerns about collateral in case of exchange financial distress. For ordinary Bitget retail users, balances remain dependent on the exchange's own controls and user protection fund, which Bitget stated was worth over $464 million.
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