Bybit Hack Fallout: $1.4 Billion Stolen, Crypto Prices See Immediate Dip

Bybit Hack Exposes Vulnerabilities: $1.4 Billion Stolen—Are Your Funds Safe?

Bybit Hack Fallout – On Friday, Bybit, a prominent centralized cryptocurrency exchange, confirmed a significant hack that resulted in the theft of over $1.4 billion worth of assets. The stolen funds included Ethereum (ETH) and stETH, which were withdrawn from the platform’s hot wallet and sold via decentralized exchanges. This breach has triggered a sharp decline in crypto prices, including a near 3% drop in Ethereum, which fell to $2,727, and a 1% dip in Bitcoin, currently priced at $98,091.

Details of the Hack and Security Flaws

Bybit’s CEO Ben Zhou addressed the attack, explaining that the incident involved a manipulated transfer during a planned wallet operation. The hacker took control of a ETH cold wallet, transferring all assets to an unidentified address. Zhou clarified that, despite the loss, all other cold wallets remain secure, and withdrawals from the platform are operating normally.

In a statement posted on X (formerly Twitter), Zhou reassured users, emphasizing that Bybit’s financial stability remains intact: “Bybit is solvent even if this hack loss is not recovered… All of clients’ assets are 1-to-1 backed, we can cover the loss.”

Sophisticated Attack Tactics: How Funds Were Obfuscated

Security researcher ZachXBT initially flagged the suspicious activities, revealing the unauthorized outflows. Bybit later confirmed that the attack involved a sophisticated manipulation of the signing interface. Although the attacker showed the correct address, the smart contract logic was altered, granting them control over the cold wallet. The stolen ETH is now believed to be split between 39 different addresses, possibly to obscure its trail.

Despite the scale of the loss, Bybit continues to assert its ability to cover the stolen funds and reassure customers of the security of other assets. However, the hack has sent shockwaves through the crypto industry, with many closely monitoring its impact on market trends.

Bybit Recovers Losses: $4 Billion Inflows in the Last 12 Hours

According to TenArmor tracking data, Bybit saw inflows of 63,168.08 ETH, $3.15 billion USDT, $173 million USDC, and $525 million CUSD in the last 12 hours, totaling over $4 billion in assets. This significant influx of funds fully covered the financial losses caused by the hack attack that occurred yesterday.

What’s Next for Bybit and the Crypto Market?

As Bybit manages the aftermath of the hack, the broader crypto market remains volatile. Traders and investors are advised to stay vigilant as more developments unfold, keeping an eye on any further updates from the exchange regarding recovery efforts.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.