Bybit, one of the world’s leading cryptocurrency exchanges, has confirmed that it suffered a major security breach, resulting in the loss of $1.4 billion worth of Ethereum (ETH) and staked Ethereum (stETH). This incident now stands as the largest crypto hack in history.
Ethereum Market Hit by Liquidations
Following the attack, Ethereum futures markets saw $76 million in liquidations within just four hours, according to CoinGlass. In total, 183,000 traders were affected over the past 24 hours, with $499 million in liquidations recorded.
Ethereum’s price dropped 3%, now trading at $2,727, while Bitcoin also saw a 1% decline, currently priced at $98,091.
Bybit CEO Addresses Security Breach
Bybit’s co-founder and CEO Ben Zhou confirmed that a smart contract manipulation within the exchange’s ETH cold wallet led to the attack.
"The attacker exploited a security vulnerability during a routine transfer, gaining unauthorized control of the wallet," Zhou explained.
Bybit has assured customers that it remains solvent and is taking immediate steps to address the issue.
Funds Being Moved Across Multiple Wallets
Blockchain security researcher ZachXBT reported that the stolen Ethereum is being divided into 39 different wallets, a technique hackers often use to evade detection.
Meanwhile, Arkham Intelligence has launched a $50,000 bounty for information on the attackers.
Biggest Crypto Hack in History
Bybit’s loss now exceeds previous major cryptocurrency hacks, including:
- Axie Infinity Ronin Network ($625M stolen, 2022)
- Mt. Gox Collapse (850,000 BTC lost, 2014)
- Poly Network Hack ($611M stolen, 2022)
The breach raises fresh concerns about security vulnerabilities in cryptocurrency exchanges, prompting discussions on how firms can better protect digital assets from cyber threats.
