📉 BEARISH OUTLOOK
Last week, one of the world's biggest crypto exchanges got hit with a $388 million hack. Now it's slowly crawling back online, while the hacker is already trying to cover their tracks.
Here's what happened and why it matters if you hold any crypto anywhere.
Bitget, a major crypto exchange, was hacked last week in a massive breach that drained $388 million worth of assets. The exchange has now resumed Bitcoin withdrawals, which is a big first step. Ether withdrawals are expected to come back on Tuesday, and USDt (Tether), a popular stablecoin, on Wednesday.
At the same time, the hacker is not sitting still. They have been swapping stolen Ethereum (ETH) through a service called THORChain, which is a decentralized tool that lets people swap one crypto for another without using a normal exchange. Hackers often use it to make stolen funds harder to trace. You can follow Bitget's official updates here as the situation develops.
If you keep crypto on any exchange, this is a reminder that even big, well-known platforms can get hit. When an exchange freezes withdrawals after a hack, your funds are locked and you have no control. This is why a lot of experienced crypto users say "not your keys, not your coins," meaning if you do not hold your own crypto wallet, you are trusting someone else to keep it safe.
The fact that the hacker is already moving funds through THORChain suggests they are trying to cash out quickly, which is typical. It also puts some short-term selling pressure on ETH, since the hacker is swapping large amounts. That is not great news for Ethereum prices right now.
Keep an eye on whether Bitget completes the full withdrawal rollout by Wednesday as planned, and whether blockchain investigators like Chainalysis manage to trace or freeze any of the stolen funds. If the hacker successfully launders everything, it will likely push regulators to crack down harder on decentralized swapping tools like THORChain.
Bitget says it is restoring services in stages and has restarted Bitcoin withdrawals. Still, until full services are back and the situation is clearer, it is worth being cautious with any funds on the platform.
THORChain is a decentralized service that lets people swap different cryptocurrencies without signing up anywhere or showing ID. Hackers use it because it makes stolen funds harder to trace compared to regular exchanges.
Many security-focused crypto users store funds in personal wallets where only they hold the private keys. It is not financial advice, but this hack is exactly the kind of event that makes people think seriously about that choice.
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