In one of the largest cryptocurrency exchange breaches in recent history, Bybit has confirmed that hackers stole approximately $1.4 billion worth of Ethereum (ETH) and related tokens from one of its cold wallets.
Bybit CEO Ben Zhou disclosed that the attack was a result of a sophisticated phishing technique. The hackers manipulated the multisignature wallet interface, deceiving authorized personnel into approving a malicious smart contract update. This granted the attackers control over a cold wallet, enabling them to siphon off a staggering amount of funds.
Despite the significant breach, Zhou reassured users that Bybit remains solvent. He emphasized that client funds are fully backed on a 1:1 basis and that all other cold wallets remain secure. Withdrawal services on the exchange are operating normally, and no further security threats have been detected.
Bybit is actively working with security firms and on-chain analysts to track the stolen funds and prevent further unauthorized activities. The exchange has also alerted the broader cryptocurrency community to monitor for any suspicious transactions associated with the hack.
This incident highlights the persistent security challenges facing cryptocurrency exchanges, as cybercriminals continue to employ increasingly advanced techniques to exploit vulnerabilities in digital asset platforms. Bybit has pledged to enhance its security protocols to prevent future breaches and restore investor confidence.
Authorities and industry experts are now closely watching the situation as efforts intensify to trace the stolen assets and hold the perpetrators accountable.
