One of the largest crypto exchanges, Bybit, has just experienced a massive security breach. Hackers were able to withdraw an estimated $1.5 billion from the platform’s Ethereum cold wallet, leaving the crypto community stunned.
The attackers deployed a sneaky tactic—forging the signing process of the wallet with an imposter yet realistic user interface. The signers of the wallet were viewing what appeared to be a routine transaction, yet embedded in code was a changed smart contract providing the hacker total control.
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Bybit CEO Ben Zhou confirmed the attack, stating that hackers tricked the exchange into approving a transaction that transferred all the ETH in the cold wallet to an unknown address. “Rest assured, all other cold wallets are secure,” Zhou added, trying to calm users.
Even as the stolen funds get swapped and moved around, Bybit insists withdrawals are still working and no other wallets have been affected. The exchange is working with security experts and authorities to track the stolen assets and recover what they can.
Interestingly, blockchain security firm Cyvers Alerts had flagged suspicious activity involving Bybit’s wallets just before the hack. Now, the exchange is asking the crypto community for help in tracing the stolen funds.
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With another massive hack hitting the crypto world, traders and investors are left wondering—how safe is their money?
