Bitget CEO Pessimistic on $388M Recovery; NEAR Intents Blocks Hacker Funds

Bitget’s chief executive has voiced significant doubt regarding the recovery of the $388 million stolen from the cryptocurrency exchange last week, even as a blockchain protocol reported blocking millions in illicit transfers. The developments unfold as Greece marks a regulatory milestone, registering its initial crypto providers under the European Union’s comprehensive MiCA framework.

Gracy Chen, CEO of Bitget, stated she is “not very optimistic” about retrieving a substantial portion of the funds lost in the recent security breach. Citing the February 2025 Bybit hack, where only a minimal percentage of stolen assets were recovered, Chen underscored the inherent difficulty in tracing and freezing funds once they are dispersed across the complex crypto ecosystem.

Bitget initially estimated losses at $352 million, later revising the figure upwards to $388 million after a thorough review of additional transfers. The exchange has launched a bounty program, offering a 5% reward for frozen funds and an additional 5% for successfully recovered assets. While initial evidence hinted at potential North Korean involvement, investigations into the source of the breach are ongoing. Bitget has also commenced a phased restoration of withdrawals, beginning with Bitcoin on Monday and Ether on Tuesday.

Blocking Illicit Flows

Amidst Bitget’s recovery efforts, NEAR Intents, a protocol facilitating cross-chain asset swaps, announced it had blocked over $50 million in attempted transfers linked to the Bitget hack. Alex Shevchenko, general manager of NEAR Intents, explained that its SHIELD system detected these transfers, which subsequently diverted to other providers. The protocol managed to freeze $503,000 during execution, though approximately $166,000 in suspected stolen funds did pass through.

Shevchenko emphasized that permissionless systems, while designed for open access, do not inherently have to be neutral regarding illicit activity. He asserted that builders of these protocols make choices about their capabilities, and refusing to facilitate the laundering of stolen assets is a deliberate stance. Shevchenko underscored the importance of property rights for functioning markets, arguing that a system protecting thieves cannot serve as a future economic backbone.

Greece Embraces MiCA Regulation

In a significant regulatory step, Greece has registered its first four crypto providers under the European Securities and Markets Authority’s (ESMA) Markets in Crypto-Assets (MiCA) framework. BCash, Xenios Blockchain Group, Capital Wallet Greece, and Piraeus Bank are among the new additions to the EU-wide register, which now lists 359 unique providers across various member states.

This development comes nearly three months after Binance, the world’s largest crypto exchange, withdrew its application for Greek authorization. A successful application would have allowed Binance to leverage MiCA’s passporting system, enabling it to offer services across the entire EU. Reports from the Wall Street Journal in September suggested that European Central Bank (ECB) President Christine Lagarde had intervened to block Binance's application, a claim the Hellenic Capital Market Commission (HCMC) has since denied without further elaboration.

Why it matters

The Bitget hack underscores the persistent security challenges within the cryptocurrency sector and the difficulties exchanges face in recovering stolen assets, highlighting the need for robust security measures and industry cooperation. The intervention by NEAR Intents signals a growing trend where decentralized protocols are grappling with their role in combating illicit finance, challenging the notion of absolute neutrality in permissionless systems. Meanwhile, Greece's entry into the MiCA regulatory register reinforces the EU's commitment to establishing a harmonized legal framework for crypto assets, aiming to foster market integrity and consumer protection across the bloc.

What to watch

Investors and market participants will be closely monitoring Bitget's ongoing investigations and recovery efforts, particularly the effectiveness of its bounty program. The broader implications of NEAR Intents' stance on property rights within permissionless systems could influence future protocol designs and spark further debate on the balance between decentralization and regulatory compliance. Additionally, the continued expansion of MiCA registrations across EU member states will be a key indicator of the framework's adoption and its impact on the operational landscape for crypto-asset service providers in Europe.