Bitget, a top-10 centralized exchange by volume, suffered a hot wallet breach affecting approximately $351.6 million across four chains. The exchange suspended withdrawals while asserting cold wallets were untouched and that its user protection fund of over $464 million is sufficient to cover losses. The scale places this among the largest CeFi security incidents of the past two years.
For Armada's crypto desk, the incident directly validates the firm's no-rehypothecation policy and Fireblocks custody model, which clients and prospects should be reminded of. Family offices and miners holding collateral with Armada will likely ask about custodial segregation; the Fireblocks SOC 2 posture and cold-storage architecture are the correct talking points. Monitor whether contagion affects BTC or ETH spot liquidity, which could stress LTV ratios on open repo positions.