Bybit Experiences Large-Scale Hacking Incident with Over $1.46 Billion in Ethereum Stolen

Bitcoin Hacker Illustration Image

KOMPUTER JADUL-, Cryptocurrency exchange Bybit has suffered what is likely the largest security breach in the history of the cryptocurrency, with reports that $1.46 billion in Ethereum (ETH) was withdrawn from its hot wallets. Bybit CEO Ben Zhou confirmed the hack via social media, stating that a hacker had taken control of a specific ETH cold wallet and then transferred its contents to an unidentified address.

The breach was first suspected when on-chain data revealed a massive transfer of 401,346 ETH, worth around $1.13 billion, from Bybit’s hot wallet to an unknown wallet. The transfer not only raised concerns about a potential hack but also affected Ethereum’s market price, with the cryptocurrency dropping more than 4% as the stolen funds began to be liquidated.

Zhou assured users that despite the breach, all other cold wallets remained safe and withdrawals were proceeding normally. According to details provided by Zhou, the hack was carried out by tricking wallet signers with a fake user interface that displayed a valid address, leading them to unknowingly agree to changes to the smart contract logic. This gave the attackers full control over the wallet, allowing them to steal all the ETH held in it.

The methods used in the Bybit hack are very similar to the techniques used in previous significant breaches, such as the WazirX and Radiant Capital hacks in 2024. Security experts have compared the Bybit incident to previous incidents, highlighting similarities in the attackers’ approaches.

As a direct result of the hack, nearly $200 million worth of Lido Staked Ether (stETH) was sold within the first half hour, further impacting Ethereum’s market value. As the investigation into the hack continues, more information is expected to become available. The incident serves as a reminder of the vulnerabilities that exist in the cryptocurrency exchange space and the importance of strong security measures.

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