Bybit, a major crypto exchange, recently suffered a massive hack, resulting in the theft of around $1.4 billion worth of cryptocurrency. This incident sent ripples through the crypto market, particularly impacting the price of Ethereum (ETH).
The Heist
The hack involved a sophisticated attack on Bybit’s ETH cold wallet. Attackers cleverly manipulated a transaction from the cold wallet to a warm wallet, masking the real destination address. This allowed them to steal a huge amount of crypto, including:
- 401,347 ETH (around $1.12 billion)
- 90,376 stETH ($253.16 million)
- 15,000 cmETH ($44.13 million)
- 8,000 mETH ($23 million)
Bybit’s Response and Market Impact
Bybit’s CEO, Ben Zhou, assured users that all other cold wallets are secure and client funds are safe. He stated that the hack only affected the ETH cold wallet and that Bybit is solvent and can cover the losses. The exchange is working with blockchain experts to investigate and recover the stolen funds.
The hack caused a temporary dip in ETH’s price, dropping about 5% to $2,675 before recovering to around $2,766.
What Happened?
The attackers used a very clever technique. They managed to change the underlying code of the transaction without changing the address displayed to the user. This allowed them to secretly redirect the funds to their own wallets.
The Bottom Line
This massive hack highlights the ongoing security challenges in the cryptocurrency space. While Bybit claims client funds are safe, the incident serves as a reminder of the potential risks involved in holding and trading cryptocurrencies.
