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Bitget Loses $351 Million in Record 2026 Crypto Theft After Attackers Forge Internal Transfers

Bitget's hot and warm wallets were drained of approximately $351 million on September 24, marking the largest known single crypto theft of 2026. Attackers did not steal private keys but instead forged internal transfer requests that bypassed approval workflows. The stolen assets spanned at least five blockchains, with the largest portion being roughly 103 million XRP worth about $157 million. Bitget's CEO Gracy Chen attributed the incident to North Korean hackers based on IP patterns, behavioral signatures, and on-chain evidence matching prior operations. The exchange maintains a $464 million user protection fund sufficient to cover all losses, while deposits and trading remain unaffected and only withdrawals are temporarily frozen. The case highlights how process-level compromises can bypass even robust key-management controls in cryptocurrency exchanges.

Address Substitution Attacks Exploit Partial Address Checks in Crypto Wallets

Address poisoning, clipboard hijackers, and supply-chain malware all rely on users verifying only the first and last few characters of long blockchain addresses. Researchers detail real incidents including a May 2024 theft of 1,155 WBTC worth roughly 68 million dollars where an attacker poisoned transaction history after a test transfer. Studies from Carnegie Mellon University show that even security-conscious users miss mismatches in truncated addresses 21 to 38 percent of the time. Existing identicons such as Jazzicon and Blockies can be matched by attackers because they depend on only the first eight hex characters. The team released the open-source Humanized Hash library that renders any address or hash as a 4x4 grid of colored shapes using PBKDF2 stretching, making forgery computationally expensive. Calculations indicate that matching both the visual pattern and edge characters requires tens to millions of GPU-years on current hardware. The library supports multiple languages with identical output and carries an MIT license with a fixed algorithm.

Liquid Network Federation Wallet Drained of 4000 BTC in Alleged White-Hat Exploit Exposing L-BTC Minting Flaw

On September 7, the Liquid Network sidechain suffered a major incident where its Federation wallet lost approximately 4000 Bitcoin, worth around $320 million or 2.1 billion RMB, leaving only 200 BTC behind. The funds were moved through the authorized SideSwap settlement platform using PAK keys without any reported key compromise. Liquid officials described the actor as a claimed white-hat hacker intending to return assets for a fee, but security experts point to a critical vulnerability allowing unauthorized L-BTC minting that could bypass the 1:1 Bitcoin backing mechanism. The network has halted all new transactions while federation members work on remediation, affecting major platforms including BTSE, Bitfinex, and BitMEX. This event aligns with a broader 2026 trend where attackers target protocol-level asset issuance rather than individual keys, as seen in recent Coldcard RNG flaws and other incidents totaling $972 million in crypto thefts. The case underscores weaknesses in multi-signature federation validation and cross-chain anchoring that go beyond traditional smart contract bugs.