Bybit CEO Confirms $1.4 Billion ETH Hack
- Bybit experienced a major exploit resulting in a $1.4 billion loss of ETH.
- CEO Ben Zhou assures Bybit’s solvency and ability to cover the losses.
Bybit recently fell victim to a significant exploit, where a hacker managed to steal over $1.4 billion worth of ETH and staked ETH from the exchange. The CEO of Bybit, Ben Zhou, confirmed the hack through a post on X, revealing that the attacker exploited a vulnerability that allowed them to drain the ETH cold wallet of the exchange.
The news of this hack, considered one of the largest in the market, led to a decrease in various crypto prices. Although Ethereum’s price saw a decline from its intraday gains, the reaction remained relatively subdued at the time of reporting.
Bybit’s Solvency Amidst the Attack
Bybit released an update detailing the incident, stating, “Bybit detected unauthorized activity involving one of our ETH cold wallets.” The exchange explained that the attack manipulated a transaction between the ETH multisig cold wallet and warm wallet, allowing the attacker to control the affected ETH cold wallet and transfer the funds to an unknown address.
Despite the attack, CEO Ben Zhou reassured the community that Bybit remains solvent and can cover the losses incurred. Withdrawals from the exchange were unaffected, ensuring clients’ assets remain secure and backed at a 1-to-1 ratio.
Security experts like ZachXBT observed the hacker’s movements, noting fund transfers to new addresses. Additionally, Arkham, a blockchain intelligence firm, announced a bounty to uncover the identity of the hacker and mitigate further risks.
