Cryptocurrency exchange Bybit has suffered a massive security breach, with hackers stealing over $1.4 billion worth of crypto assets, including liquid-staked Ether (ETH), Mantle Staked ETH (mETH), and other ERC-20 tokens.
The attack, discovered by onchain security analyst ZachXBT, is one of the biggest crypto exchange hacks in recent history.
How the Attack Happened
Bybit co-founder and CEO Ben Zhou confirmed the incident, explaining that hackers gained control of an Ethereum cold wallet on the platform.
The breach occurred after a transfer from Bybit’s multi-signature wallet to a warm wallet was manipulated. Zhou stated that the transaction was made to appear legitimate but contained malicious source code, which altered the smart contract logic and siphoned funds to the hacker’s address.
Following the exploit, ZachXBT urged the crypto community to blacklist the hacker’s wallet addresses to prevent further movement of the stolen funds.
Bybit Assures Users of Solvency and Security
Despite the loss, Bybit reassured its users that the platform remains solvent and all client funds are secure. CEO Zhou stated: “Bybit is solvent even if this hack loss is not recovered. All of the client’s assets are 1-to-1 backed — we can cover the loss.”
Bybit also confirmed in a statement on X that its other cold wallets remain secure and that withdrawals and operations are unaffected.
Read also: NYSE Pushes for ETH Staking in Grayscale Ethereum ETFs
Market Impact and Growing Security Concerns
The hack sent shockwaves through the crypto market, causing ETH to drop by over 4.2% in the last 24 hours. This incident adds to a growing list of high-profile crypto exchange hacks between 2024 and early 2025, raising concerns about the security of even well-established platforms.
Bybit has called on blockchain security experts to assist in tracking and recovering the stolen funds. As investigations continue, the incident serves as a stark reminder of the ongoing risks in the crypto industry and the need for robust security measures to protect users’ digital assets.
ETH is trading at $2,633 at the time of writing, representing a 4.2% dip in the past 24 hours. Likewise, bitcoin (BTC) has dropped over 3.5% today, below $95,000.
About Author
