Bybit, a major cryptocurrency trading platform, was the victim of one of the largest hacks in history. Unknown attackers stole cryptocurrencies worth $1.4 billion, mainly Ethereum, with a total of 401,346 tokens taken. The background of the attack raises many questions.
On Friday, a devastating hacking attack hit Bybit, one of the world’s largest cryptocurrency trading platforms. According to reports from Arkham Intelligence and blockchain analyst ZachXBT, this is one of the largest thefts in the history of the crypto market.
According to Bybit, an Ethereum cold wallet was compromised through a manipulation of the user interface. The attackers apparently altered the logic of a smart contract. The exchange, however, assures that all other wallets are secure.
Initial analyses suggest that the hackers exploited security vulnerabilities. They allegedly manipulated the multi-signature function of a cold wallet and set a malicious smart contract to gain unauthorized access. Already, 200 million dollars of the stolen assets have been transferred further.
The news of the hack caused immediate turbulence in the markets. The Ethereum price broke down by almost 8% in a few hours, while the Bitcoin price dropped by 4.5%. The markets have since stabilized, as Bybit took swift measures to regain trust.
Bybit reacts – customer funds allegedly secure
Bybit CEO Ben Zhou attempted to calm the waves immediately. On the X platform, he emphasized that all customer funds are secure and the operation continues uninterrupted. “We can cover the loss” Zhou assured in a live stream, explaining that the platform will draw on its own reserves.
In an official statement, Bybit is calling on cybersecurity experts and blockchain analysts to join the global pursuit of the stolen assets. As an incentive, Bybit is offering 10% of the recovered sum – potentially up to $140 million.
However, it remains unclear how the hackers managed to exploit the security flaw. Bybit is now working with blockchain forensic experts and partners to track the stolen assets and identify potential weaknesses.
Who is behind the attack?
So far, there are no confirmed information on the identity of the attackers. Due to the complexity of the attack, experts assume that a highly specialized group is behind it. Blockchain analysts are currently investigating suspicious wallet addresses and transaction patterns to track the hackers.
This incident is part of a series of spectacular attacks on cryptocurrency exchanges. Already in 2022, several platforms were victims of cyberattacks, with hundreds of millions of dollars stolen. The industry is thus once again facing the pressing question of how digital asset security can be ensured in the long term.
Bybit has established itself as one of the leading cryptocurrency exchanges since its founding in 2018, particularly specializing in derivatives trading and growing rapidly in recent years. The current hack, however, could have long-term effects on user trust.
Experts are calling for strengthened security measures, especially in the management of cold wallets and smart contracts. Moreover, cryptocurrency exchanges are increasingly under regulatory observation, as such attacks can destabilize the entire system.