In a significant security breach, hackers have targeted the Bybit cryptocurrency exchange, stealing Ethereum valued at over $1.4 billion. This incident marks the largest hack in the 15-year history of the cryptocurrency industry.
On February 21, Bybit’s co-founder and CEO, Ben Zhou, reported on X that hackers gained control of Bybit’s cold wallet and subsequently transferred the stolen assets to an unknown address. Blockchain analysis revealed that approximately $1.4 billion was withdrawn from the exchange’s wallet through suspicious transactions. Analysts from ZachxBT indicated that the hackers accessed a cold wallet and executed transfers to a hot wallet to facilitate the dispersal of funds.
According to a spokesperson from Bybit, the hackers managed to forge a signature interface to maneuver assets between wallets. They modified the trading code associated with Bybit’s original wallet to carry out their fraudulent activities. This breach was described as a sophisticated attack, leading to the largest theft in cryptocurrency history, surpassing the previous record held by the Poly Network, which experienced a $611 million theft in 2021.
Research firm Arkham Intelligence corroborated that around $1.4 billion had been siphoned from Bybit, with at least $200 million already moved to new addresses for potential liquidation. The hack sent shockwaves through the cryptocurrency market, resulting in a significant drop in Ethereum’s price, which fell from $2,800 to a low of $2,600 before stabilizing around $2,680.
In the wake of the incident, users rushed to withdraw funds, creating a chaotic environment within the exchange. Ben Zhou conducted a livestream to reassure users, noting that approximately 4,000 withdrawal requests were pending, with 70 still being processed due to network congestion.
ZachxBT, a security analyst, has identified the Lazarus Group—a hacking collective believed to be linked to North Korea—as a potential suspect in this breach. However, no formal confirmation has been provided by the involved parties regarding this information.
Other cryptocurrency exchanges have stepped forward to support Bybit in recovering from the incident. OKX’s marketing director, Haider Rafique, announced the deployment of a security team to assist, while Kucoin expressed solidarity with Bybit, emphasizing the need for collaboration among exchanges to combat cybercrime.
In light of the attack, concerns have arisen about the possibility of Bybit facing insolvency similar to the FTX collapse. Nevertheless, industry experts assert that Bybit is financially robust enough to withstand this crisis.
Users are urged to bolster their asset security protocols across all platforms, which includes utilizing multi-signature wallets, enabling two-factor authentication, creating strong passwords, and implementing secure access measures.
Established in 2018, Bybit has become one of the world’s largest cryptocurrency exchanges, handling an average trading volume of $36 billion per day. Before the recent attack, the platform’s assets were estimated at around $16.2 billion, with the amount stolen representing about 9% of its total assets.
