Swiss Bank Sygnum Offers Custody Alternative Amid Bitget Wallet Breach

Following a security breach on September 24 that resulted in approximately $387.5 million in unauthorized transfers, Bitget suspended withdrawals while maintaining trading and deposit services. The incident, which affected the exchange's hot and warm wallets, prompted questions regarding off-exchange custody solutions. Sygnum, a Swiss bank, previously announced a partnership allowing Bitget's institutional clients to trade using collateral held at the bank rather than in exchange-controlled wallets. Bitget is currently working with Mandiant and SlowMist to investigate the vulnerability and has promised a status update on withdrawals by September 26 at 04:00 UTC.