A major intrusion into Bybit’s system led to thieves stealing more than 1.4 billion Ethereum (ETH). On-chain expert ZachXBT detected large amounts of money leaving Bybit’s account system.
The available blockchain records demonstrate that Bybit moved over $1.4 billion ETH coins from reserved cold storage to several unknown holder addresses. Blockchain investigator ZachXBT examined the unusual transactions and followed the path of stolen ETH to particular receiving accounts.
Bybit ETH multisig cold wallet just made a transfer to our warm wallet about 1 hr ago. It appears that this specific transaction was musked, all the signers saw the musked UI which showed the correct address and the URL was from @safe . However the signing message was to change…
— Ben Zhou (@benbybit) February 21, 2025
Bybit has verified the illegal transaction and connected it to an advanced hacking method that masked the display panel. Ben Zhou from Bybit explains that hackers managed to trick the exchange security by changing how ETH cold wallets worked in their smart contract. Through these controls, they seized wallet authority before moving the funds.
Bybit Assures Security And Financial Stability After Hack
Zhou sent a message to users confirming the protection of their other online ETH wallets. He advised that withdrawals still ran smoothly throughout the incident. The platform requires blockchain analysis to monitor stolen assets so it can locate and arrest the party responsible.
Although Bybit lost a tremendous amount of money, it assures customers it is still financially secure. Zhou explains that the exchange has savings that surpass stolen funds while preserving a perfect 1:1 asset-backed ratio.
Before the attack, Bybit owned $16.2 billion in total reserves but lost 8.64% of its funds during the theft. Despite this heavy loss Bybit remains operational and guarantees its regular activities to customers. Research shows the hacker behind the theft has started transferring ETH from numerous wallets in an attempt to conceal their identity.
Crypto Leaders Unite To Support Bybit After Hack
People in the cryptocurrency world have taken quick steps to handle the security breach. Changpeng “CZ” Zhao proposed that Bybit should temporarily end withdrawals to prevent future loss. He agreed to assist in tracking and finding back the money that was taken.
TRON founder Justin Sun confirmed his staff monitors the theft closely. Sun offered to help find the stolen funds while developing defense strategies with Bybit.To help catch the hackers behind this theft Arkham Intelligence launched a pay-for-information program. Bybit’s security team will analyze the submissions to locate the thieves behind this issue.
Bybit collaborates with security specialists such as Safe, which includes its security personnel in the investigation. The Safe security team did not diagnose a front-end cyberattack yet suspended part of its services to protect users.
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