Exchange executive tells CNBC most stolen funds may never be retrieved, as reports raise questions about a possible Coinbase breach too Bitget has confirmed that hackers drained approximately
Exchange executive tells CNBC most stolen funds may never be retrieved, as reports raise questions about a possible Coinbase breach too
Bitget has confirmed that hackers drained approximately $388 million from the exchange, in an incident attributed to actors linked to North Korea's Democratic People's Republic of Korea, commonly referred to as DPRK. The figure has also been cited as roughly $387 million in some reporting, reflecting ongoing efforts to pin down the exact scope of the loss.
Bitget's chief executive addressed the breach directly in comments to CNBC, telling the network that the exchange is not expecting to recover a large share of the stolen assets. That admission underscores a persistent challenge in crypto security: once funds move through mixers, cross-chain bridges, or unregulated exchanges, tracing and clawing them back becomes extraordinarily difficult.
DPRK-linked hacking groups have become one of the most consistent threats facing the digital asset industry. State-backed operatives have been blamed for a string of exchange breaches and wallet compromises over the past several years, with stolen funds often funneled toward financing the regime's weapons programs, according to past assessments from blockchain analytics firms and government agencies. The Bitget incident fits that broader pattern of targeting centralized platforms holding large pools of user assets.
Separate reporting from crypto.news has focused on tracing the destination of the stolen funds, an effort that mirrors how analysts typically respond to major hacks. Blockchain forensics teams commonly follow on-chain movement through wallets, decentralized exchanges, and bridges in hopes of identifying choke points where funds might be frozen or flagged before cashing out.
Alongside the Bitget disclosure, questions have emerged over whether Coinbase, one of the largest U.S.-based exchanges, may have also been targeted in a related or parallel incident. That possibility has been raised in coverage of the story rather than confirmed as fact, and the relationship, if any, between the two situations remains unclear. Exchanges facing security incidents often take time to fully scope an intrusion before issuing detailed public statements, which can leave gaps between initial reports and confirmed findings.
The scale of the Bitget loss places it among the larger exchange hacks reported this year, adding to a running tally of major crypto security failures. Each incident renews scrutiny of how exchanges safeguard custody of customer funds, particularly hot wallets connected to the internet that remain more vulnerable to intrusion than offline cold storage.
For now, the exchange's own acknowledgment that recovery is unlikely signals the limits of post-hack remediation. It also reinforces why much of the industry's security focus has shifted toward prevention, monitoring, and faster incident response rather than relying on after-the-fact fund recovery.
A loss of this size can pressure an exchange's balance sheet and may raise questions among users about withdrawal processing and solvency reassurances in the near term. Historically, exchanges facing comparable breaches have moved to cover user losses from reserves or insurance funds to maintain confidence, though no such commitment has been detailed here.
The incident is also likely to intensify regulatory and industry attention on exchange custody practices, particularly given the attribution to state-linked hacking groups. Renewed scrutiny could affect how exchanges disclose security incidents and how quickly they coordinate with blockchain analytics firms to trace and potentially freeze stolen assets.
The Bitget hack adds another entry to a growing list of major exchange breaches tied to North Korean state actors, with full fund recovery looking unlikely. Questions about a possible parallel Coinbase incident remain open as investigators and reporters continue tracing where the stolen money went.
Reports put the loss at approximately $388 million, with some sources citing a figure closer to $387 million as investigations continue.
The breach has been attributed to hackers linked to North Korea, commonly referred to as DPRK-linked actors, a group blamed for numerous past crypto exchange attacks.
Bitget's CEO told CNBC the exchange does not expect to recover a significant portion of the stolen assets, citing the difficulty of tracing funds once moved through the blockchain.
Reporting has raised the question of whether Coinbase experienced a related or separate breach, but this has not been confirmed as fact, and details remain unclear.
Blockchain analysts and reporters, including crypto.news, have been tracking the movement of the stolen funds across wallets and platforms, though the full trail has not been publicly finalized.
Originally reported by AltcoinGordon, written by Victoria Reed. Republished with permission.
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