Bybit Exchange Hacked: Over $1.1 Billion in Ethereum Stolen
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Bybit, one of the largest cryptocurrency exchanges, has suffered a major security breach. However, Ben Zhou, the exchange CEO, confirmed on X (formerly Twitter) that a hacker drained one of its Ethereum (ETH) cold wallets. To this end, the hack resulted in the theft of 401,000 ETH (approximately $1.1 billion) at $2,800 per ETH.
However, despite the incident, Zhou has assured users that Bybit remains financially stable and all customer assets are fully backed. To this end, Etherscan, a blockchain explorer, has already labeled the hacker’s wallets as “Bybit exploiter,” making it difficult to move the stolen funds.
Massive Fund Transfers and Security Concerns
Whale Alert, a service that tracks large crypto transactions, initially flagged a transfer of 401,000 ETH to a new wallet. However, within hours, the hacker has dispersed the stolen funds into over 40 different wallets, with transactions occurring in chunks of 10,000 ETH, each valued about $27 million. Although some estimates put the stolen amount at $1.4 billion, Zhou confirmed the total loss at $1.1 billion.
Zhou mentioned that Bybit is solvent even if the condition remains, indicating that the company’s total value exceed $20 billion, despite former CEO Changpeng Zhao advice of pausing withdrawals as a precaution. The exchange is now working with blockchain experts to trace the stolen ETH and prevent further losses.
Nature of the Hack and Bybit’s Response
During a livestream on X, Zhou has explained that the intrusion happened during a routine transfer between Bybit’s cold and hot wallets. To this end, Bybit uses Safe global multi-signature wallets for cold storage, and Zhou was the final signer of the transaction. As investigations are currently ongoing, the company suspects either a sophisticated cyberattack that faked the Safe website or a potential compromise within Safe itself.
To reassure customers, Bybit is currently prioritizing withdrawal requests, which have surged to nearly 100 times the normal volume. However, Zhou mentioned that 70% of withdrawals have been processed, but larger ones are undergoing compliance checks. Though ETH withdrawals are temporarily unavailable, Bybit is securing a bridge loan from partners to meet withdrawal requests. To this end, Zhou emphasized that “Bybit has plenty of funds, just not in ETH,” confirming the company’s liquidity and stability.
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