Bybit CEO confirms all withdrawals are being processed
Bybit Loses $1.4 Billion in ETH Cold Wallet Hack, CEO Assures Funds Are Safe.
Bybit CEO Ben Zhou confirmed on Friday that the crypto exchange suffered a significant breach when a hacker exploited a flaw in its ETH cold wallet security.
Over $1.4 billion worth of ETH and liquid staking derivatives were stolen after the attacker tricked cold wallet signers by exploiting a masked user interface that mimicked a legitimate Safe Wallet URL.
Zhou assured users on X that, aside from the compromised cold wallet, all other hot, warm, and cold wallets remain secure and that withdrawals continue processing as “normal.”
Details of the Exploit and Response
According to Zhou, the hacker managed to seize control of the specific ETH cold wallet authorized by Bybit’s signers and transferred the entire balance to an unidentified address. The funds were subsequently moved across multiple wallets and decentralized exchanges in a concerted effort to obfuscate the theft. The scale of this exploit far surpasses previous high-profile incidents such as Coincheck’s $534 million, Mt. Gox’s $470 million, and FTX’s $415 million hacks.
In response to the breach, Bybit’s security team is collaborating with external experts and law enforcement agencies to investigate the incident. Although the official front-end of the platform was not compromised, the exchange has temporarily paused certain functionalities as a precautionary measure. Despite the substantial loss, Zhou emphasized that Bybit remains solvent and is committed to covering the loss, ensuring that client assets remain fully backed on a 1:1 basis.
Industry Reaction and Future Implications
The hack has sent shockwaves throughout the crypto industry, with many labeling it as one of the largest crypto thefts of all time. Industry analysts are closely monitoring the situation, raising concerns about evolving threats and the need for enhanced security measures across centralized exchanges. As the investigation continues, market participants and regulators alike will be scrutinizing whether this incident will prompt broader reforms in crypto exchange security protocols.
Recently we wrote, that ZkLend, a decentralized lending protocol on the Starknet network, was exploited for nearly $5 million on February 12, sparking fresh concerns over crypto security.
