Bybit exchange CEO confirms hackers stole $1.4 billion in cryptocurrency
Cryptocurrency exchange Bybit fell victim to a massive hack that resulted in the theft of over $1.4 billion worth of Ethereum, making it the largest theft ever to target a cryptocurrency platform. This cyberattack took place as Bybit was transferring funds from a secure “cold” wallet, where private keys are stored offline for safety, to an online “warm” wallet. Unfortunately, the hackers were able to manipulate the transaction by altering the smart contract logic, displaying the correct address while carrying out the theft.
ZachXBT, a well-known crypto investigator, noted suspicious outflows from Bybit totaling more than $1.46 billion, with the attacker dividing more than 20,000 ETH coins among 48 different addresses. Bybit CEO Ben Zhou later confirmed that 401,000 ETH coins had been stolen but reassured customers that other wallets were unaffected and that the exchange had enough liquidity to manage withdrawals during this challenging time. Zhou also mentioned that Bybit was looking into the source of the compromise, speculating that the issue might have stemmed from the wallet provider Safe, used by Bybit for its Ethereum cold wallet.
Safe, in response, stated that while they had not found any evidence of their official frontend being compromised, they were taking precautions by temporarily pausing certain functions of Safe{Wallet}. Before the hack, Bybit reportedly held reserve assets exceeding $16 billion, and Zhou claimed that the company had secured bridge loans to cover 80% of the stolen ETH, signaling their commitment to resolving the situation as best as possible.
This theft is likely to be remembered as one of the most significant in a series of high-profile cryptocurrency heists. Other platforms, such as Ronin Network and Poly Network, have experienced losses exceeding $600 million due to similar hacks. The Lazarus Group from North Korea has been a notable player in crypto exchange robberies, funneling large sums of stolen funds into the state’s coffers. According to Chainalysis, a blockchain monitoring firm, approximately $2.2 billion worth of cryptocurrency was stolen through hacks last year alone.
In conclusion, the Bybit hack serves as a stark reminder of the vulnerabilities present in the world of cryptocurrency exchanges and the importance of robust security measures to safeguard digital assets. The aftermath of this incident will likely prompt increased scrutiny and calls for stricter cybersecurity protocols within the industry to prevent such large-scale thefts from occurring in the future.
