Crypto Shock: Bybit Hacked for $1.4 Billion in ETH One of the Largest Heists in History
Bybit, one of the world's leading cryptocurrency exchanges, reported the theft of over $1.4 billion in digital assets on Friday. The attack specifically targeted Bybit's Ethereum (ETH) cold wallet, resulting in the loss of approximately 401,347 ETH, along with substantial amounts of stETH, cmETH, and mETH tokens.
The breach occurred during a routine transfer from Bybit's multisignature cold wallet to a warm wallet. According to CEO Ben Zhou, the transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic. This manipulation allowed the attacker to gain control over the cold wallet and syphon the funds to an unidentified address.
Despite the enormity of the theft, Zhou assured users that all customer withdrawals remain unaffected and that Bybit maintains full solvency. He emphasised that client assets are backed on a 1:1 basis and that the exchange can cover the losses incurred.
In response to the incident, Bybit has initiated an internal investigation and is collaborating with external experts to trace and recover the stolen assets. The exchange is also working closely with Safe, the provider of the compromised multisignature wallet, to determine the exact cause of the breach. As a precautionary measure, Safe has temporarily paused certain functionalities pending the outcome of the investigation.
This event has caused ripples in the cryptocurrency market, leading to price declines in major digital assets. Bitcoin (BTC) fell by 1.4% to approximately $96,986, while Ethereum's price dropped by 1.9% to $2,675.
The Bybit hack underscores the persistent security challenges facing the cryptocurrency industry. In 2024 alone, crypto platforms saw $2.2 billion in funds stolen, marking a 21.1% increase from the previous year. This incident, among the largest in crypto history, highlights the urgent need for enhanced security measures to protect digital assets and bolster investor confidence.
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