Bitget has been exploited: Are CEXs still safe?

[Vincom]

The crypto market faces yet another security exploit in 2026, with Bitget becoming the latest target. Previously regarded for its high liquidity and daily trading volumes around the 1B USD, the exchange suffered a major setback with losses estimated at approximately 350 million USD. Although Bitget acted swiftly to resolve the technical vulnerability, the resulting 350 million USD deficit poses a formidable challenge that could stifle their growth momentum at the onset of a new market cycle.

This event has reignited widespread apprehension across the community. Securing assets in the current landscape feels increasingly difficult: hardware wallets have faced data privacy incidents and private key concerns, DeFi protocols experience frequent exploits, and centralized exchanges, often viewed as accessible alternatives, continue to be targeted.

As noted in earlier commentary, maintaining portfolio allocations on centralized platforms, particularly Binance, remains my current approach. In this environment, Binance offers a higher degree of stability, supported by substantial resources, the SAFU fund, and a demonstrated ability to navigate market turbulence.

Nevertheless, the incident at Bitget serves as a stark reminder regarding mid-tier exchanges. When security capital is insufficient and reserve funds are constrained, a single major breach can trigger an extended liquidity crisis.

In a phase where any storage option carries its own Achilles' heel, I would really like to hear your perspective and strategy:

• Where are you currently choosing to store the majority of your assets: staying loyal to top-tier CEXs like Binance, or diversifying into hot wallets/cold wallets?
• Has your level of trust in the exchange you are using been affected after this Bitget incident?
• Is this event heavy enough to trigger a small-scale bank run from mid-tier CEXs back to self-custody storage solutions in the near future?

Bitget's $352 million hack happened via spoofed transfers, not private keys, CEO Gracy Chen says

[Charles-Tim]

It is better you are following what is posted on this thread instead:

Is Bitget hacked?

Your questions would have been answered if you are reading what people are posting on the thread.

I have my coins on noncustodial wallets.
This is not the first time an exchange was hacked. It has began since more than a decade ago which should be a lesson to people.

[jossiel]

• Where are you currently choosing to store the majority of your assets: staying loyal to top-tier CEXs like Binance, or diversifying into hot wallets/cold wallets?

I use them but I am not loyal to any of these cexs. No matter how secure they are as they claim, not going to trust them.

I have my cold wallet that's giving me my confidence that it's there and nothing to worry about.

This is not the first time an exchange was hacked. It has began since more than a decade ago which should be a lesson to people.

Many never learn, they're trusting the name and the brand but not understanding what it means for them if they do and what's the risk they're taking.

[Stalker22]

This shouldnt even be a question - the majority of my coin holdings will always be in cold storage, in a self-custody wallet. Definitely not on exchanges, regardless of which ones.

No, I havent lost trust in CEXs, but only for their intended purpose: trading, not long-term asset storage.

[asriloni]

• Where are you currently choosing to store the majority of your assets: staying loyal to top-tier CEXs like Binance, or diversifying into hot wallets/cold wallets?

I'm combining it by storing some in Cex while also diversifying it into the some hot wallets. Honestly, if cexs like binance gets hacked like bitget, then crypto may collapse.

• Has your level of trust in the exchange you are using been affected after this Bitget incident?

No, not really. It's all because i store it in the biggest one. Once it gets bad incident, the entire market is also facing big issues.

• Is this event heavy enough to trigger a small-scale bank run from mid-tier CEXs back to self-custody storage solutions in the near future?

It's possible, why not? When people feel they can no longer trust the mid tier CEX due to the security concern, then feel free for them to withdraw their money, then store it safely in their own wallet or self-custody.

I think they should never go all in to put their money in the mid tier cex which is always having security as serious concern. We have at least one mid tier cex gets hacked in any of crypto season.

Remember not your key, not your money.

[Jostle]

The topic "Are CEXs still safe?" implies that before Bitget was exploited, CEXs used to be safe.  That could be no further from the truth. Bitget is just one of the latest string of CEXes exploits over the past 5-6 years. CEXes had been exploited for a variety of reasons: (i) insider threat - employees comprised the funds by either working with outsiders or just simply transferring it out. This happened because of a lack of guardrails and safeguards from internal threats, (ii) bad security, resulting in external threat actors being able to exploit the CEXs.

CEXs are just like your traditional "software company" - bad/failed/badly-done security audits, would eventually lead it being exploited. Not an if, but when.

Unfortunately, this does not imply that the alternative, DEXes/DeFi are safe. They are not safe, for both similar and different reasons. The risks seemed to be greater in DEXes/DeFi, though.

For one, I used CEXes only for trading some coins which could otherwise be harder to find on other platforms like DEXes. Will not use CEX for any form of storage.

[MAAManda]

1. Where are you currently choosing to store the majority of your assets: staying loyal to top-tier CEXs like Binance, or diversifying into hot wallets/cold wallets?

I still keep a small portion of my assets in CEX, not for long-term holding, but rather for my own trading needs. Directly, it means I'm diversifying the assets I own.

2. Has your level of trust in the exchange you are using been affected after this Bitget incident?

Since we don't know what the future holds, the level of trust I place in the CEX I use has naturally declined as well. But I'm not worried, because I don't have much money there.