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⚠️ Largest Hack in Crypto History?
Today, Bybit, the second-largest cryptocurrency exchange, was hit by a massive security breach, losing around $1.4B in Ethereum. Here’s everything you need to know:
Method of Attack: Bybit’s CEO, Ben Zhou, explained that hackers used a “masked” phishing attack to trick the team into approving a malicious transaction. The attack disguised itself as a normal transaction using "Safe", a trusted wallet platform. Everything appeared legitimate—the correct address and URL were shown—but hidden code altered the wallet’s smart contract. This gave the attackers full control, allowing them to drain Ethereum from Bybit’s cold wallet.
Compromised Assets Include:
• 401,347 $ETH worth $1.12B
• 90,376 $stETH worth $253.16M
• 15,000 $cmETH worth $44.13M
• 8,000 $mETH worth $23M
Assurance of Security: Despite the breach, Zhou reassured users that other cold wallets remain secure, and withdrawals are operating normally. He emphasized that Bybit is solvent and that all client assets are backed 1:1, meaning the company can cover the loss even if the stolen funds aren’t recovered.
Withdrawal Surge: Following the breach, Bybit experienced a surge in withdrawal requests. Zhou confirmed that the platform is processing these requests and has no plans to suspend withdrawals.
Market Impact: The breach had immediate repercussions on the crypto market, with the price of ETH dropping by over 3%, falling below $2,700.
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