Bitget Hack: Exchange System Reportedly Approved $387 Million Theft

WHY IT MATTERS

When you keep cryptocurrency on a centralized exchange, you are trusting that company to safeguard your funds, much like trusting a bank with your money. In this case, the exchange's own internal approval system, which is supposed to act like a series of locks and checkpoints before money can leave, reportedly failed to stop the theft. This is significant because it suggests the attackers did not just break through the front door but instead tricked the security system into opening it for them. For newcomers to crypto, this highlights an important concept known as 'not your keys, not your coins,' meaning that when a third party holds your cryptocurrency, you depend entirely on their security practices. Self-custody options like hardware wallets give users direct control, though they come with their own responsibilities.