Cryptocurrency exchange Bitget released a Proof of Reserves update on September 30 showing an overall reserve ratio of 131% across 19 major digital assets. This snapshot, recorded at 09:00 UTC on September 29, marks the first audit following a $388 million security incident on September 24. The report confirms that all covered cryptocurrencies maintained reserve ratios exceeding the 100% benchmark, with specific figures including Bitcoin at 142%, Tether at 107%, Ethereum at 110%, and USD Coin at 154%. BNB held the lowest ratio among covered tokens at 104%.
The disclosure accompanies a phased restoration of user withdrawals that began with Bitcoin on September 28 and is scheduled to conclude across all supported tokens by October 2. Bitget CEO Gracy Chen stated the snapshot provides users a transparent view of reserves. The exchange utilizes a Merkle Tree-based cryptographic verification system for independent balance confirmation. Following the breach, where an attacker exploited a third-party security product to acquire internal credentials, Bitget confirmed private keys and cold wallets remained uncompromised. A dedicated User Protection Fund holding more than $464 million remains available to cover potential financial losses.
This development signifies a critical step in restoring operational confidence after a significant security failure. By publishing a reserve ratio well above the required threshold across all audited assets, Bitget attempts to demonstrate that its solvency was not compromised by the unauthorized transfers. The use of Merkle Tree verification allows users to independently validate their balances, addressing immediate concerns about asset availability during the withdrawal restoration process. The explicit confirmation that cold wallets remained secure helps delineate the scope of the incident, suggesting the breach was limited to hot wallet or credential management rather than core custody infrastructure.
From a market structure perspective, the reliance on a User Protection Fund exceeding $464 million highlights the growing importance of pre-funded insurance mechanisms in mitigating institutional risk. While the 131% aggregate ratio provides reassurance, the variance between assets—ranging from 104% for BNB to 181% for NEAR—indicates differing levels of buffer capacity across the portfolio. Stakeholders should monitor whether this transparency model becomes a standard expectation for exchanges recovering from breaches, as it shifts the burden of proof from regulatory compliance to real-time, verifiable data disclosure.
