You’ve probably heard about the massive crypto theft that hit Bitget — but what you might not know is how investigators are using AI to track the stolen funds. A $387 million heist has been linked to North Korea, with authorities tracing the money across multiple blockchains. This isn’t just a one-off incident — it’s part of an ongoing trend that’s shaking the crypto world.
How Did Investigators Track the Stolen Funds?
It’s no secret that crypto hacks have become a big problem — but the scale of this theft has caught many off guard. Investigators are using AI-powered tools from Chainalysis to trace the stolen assets across different blockchains. The process would have taken hours without these tools, but now it’s done in minutes.
The stolen funds were moved quickly. Within three hours of the breach, $387 million had been transferred across four chains: Ethereum (49.7%), XRP (40.8%), Zcash (7.6%), and Tron (1.8%). Hackers used decentralized exchanges to convert stablecoins into ETH, making it harder for authorities to freeze the assets.
Why Is North Korea the Suspect?
Bitget cited suspicious IP addresses tied to VPN infrastructure previously linked to North Korean hackers. The FBI has long associated the group “TraderTraitor” with similar attacks, including a $308 million theft from DMM and a $1.5 billion breach of Bybit.
This isn’t the first time North Korean actors have targeted crypto infrastructure — it’s become a well-documented trend. The stolen funds were fragmented and distributed across dozens of new wallets, making it harder to track.
What Happened at Bitget?
Bitget’s CEO Gracy Chen confirmed the breach during an X livestream, stating that attackers exploited a backend wallet system by spoofing transfer approvals. The stolen assets included Ether, XRP, USDT, and other tokens across several networks.
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The initial estimate hovered around $170 million to $183 million, but a comprehensive audit later raised the total to $387.5 million — making it one of the largest crypto heists in recent memory.
How Is Bitget Responding?
Bitget’s response included freezing user withdrawals, deploying its $464 million User Protection Fund to cover losses, and rolling out a staggered withdrawal plan. The exchange is working closely with investigators to recover as much of the stolen funds as possible.
But this isn’t just about one exchange — it’s part of an alarming pattern. The Liquid Network lost $320 million in Bitcoin earlier this year, and Drift suffered a $270 million breach in April. Many of these attacks have been linked to state-backed groups.
What’s Next for Crypto Security?
The use of AI isn’t just a convenience — it’s becoming essential in an arms race between hackers and defenders. Blockchain analytics firms like Chainalysis play a crucial role in tracing stolen funds, but the challenge remains immense.
Practitioners are watching closely. As attackers become more sophisticated, investigators must keep up with their speed and tactics — all while ensuring accuracy. The question isn’t whether another hack will happen — it’s how quickly investigators can respond when it does.
This theft is a wake-up call. Exchanges need to invest heavily in infrastructure and real-time monitoring, while regulators must keep pace with the evolving threat landscape. You can’t ignore these trends — they’re shaping the future of crypto security.
