Bybit Exchange Hacked: $1.5 Billion in Ethereum Stolen

Earlier today, cryptocurrency exchange Bybit experienced a significant security breach resulting in the loss of approximately $1.4 billion in digital assets. The incident involved the compromise of one of Bybit’s Ethereum (ETH) cold wallets, leading to unauthorized transfers of ETH and staked ETH (stETH) tokens.

The breach was identified as  suspicious outflows totaling $1.46 billion from Bybit’s wallets. These funds were subsequently swapped for ETH on decentralized exchanges. Bybit’s CEO, Ben Zhou, confirmed the exploit, explaining that the attackers employed a sophisticated phishing technique. The malicious transaction appeared legitimate to all signers, displaying the correct address and originating from a trusted URL. However, the actual signing message contained code that altered the smart contract logic, granting the attackers control over the wallet.

Despite the substantial loss, Bybit has assured users that only one cold wallet was affected and that all other wallets remain secure. Withdrawals are reportedly proceeding as normal, indicating that the stolen funds represent only a portion of the exchange’s reserves. Zhou emphasized that Bybit remains solvent and that all client assets are fully backed.