Bybit Crypto Exchange Faces $1.5 Billion Security Breach
Massive Security Breach Hits Bybit
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Bybit, a well-known cryptocurrency trading platform, is grappling with a significant security breach that resulted in the loss of $1.5 billion in digital assets. The breach targeted Bybit’s cold wallet, an offline storage system designed to safeguard crypto assets. Reports indicate that the majority of the stolen assets were in Ether (ETH). On-chain analysis shows that the hackers swiftly moved the stolen funds across various wallets, leading to quick liquidation on multiple platforms.
CEO Reassures Bybit Users
In response to the attack, Bybit’s CEO, Ben Zhou, quickly addressed the concerns, assuring users that the platform’s remaining cold wallets are secure and that withdrawal processes remain operational. Despite the challenges, the exchange managed to secure over 88,000 ETH, valued at approximately $239 million, from prominent exchanges such as Binance and Bitget. These substantial crypto transfers have bolstered Bybit’s liquidity, enabling it to accommodate the increased withdrawal demands from its customers.
Details of the Unauthorized Activities
Bybit identified unauthorized activities related to one of its ETH cold wallets. The breach occurred when an ETH multisig cold wallet conducted a transfer to a warm wallet. Unfortunately, this transaction was manipulated through an advanced attack that concealed the signing.
Authorities Link Breach to North Korean Hacking Group
This incident is now regarded as one of the largest crypto breaches in history. Arkham Intelligence and Elliptic reported that the stolen assets were dispersed across various accounts and liquidated within minutes. Elliptic noted that this breach eclipses previous significant hacks, such as the $570 million stolen from Binance in 2022 and the $611 million siphoned from Poly Network in 2021. Speculation suggests the involvement of the Lazarus Group, a notorious state-sponsored hacking entity from North Korea, known for its extensive cryptocurrency-related cybercrimes.
Bybit Receives Support from Binance and Bitget
As Bybit dealt with the overwhelming withdrawal requests, it received crucial assistance from Binance and Bitget, which transferred substantial ETH amounts to Bybit’s cold wallets. Arkham reports that Bitget contributed 40,000 ETH, approximately $106 million, on February 21st, while Binance followed with 47,800 ETH, totaling around $127.48 million. These transfers not only improved Bybit’s liquidity but also served as a vote of confidence from its industry peers.
CEO Confirms Bybit’s Financial Stability
Ben Zhou, Bybit’s CEO, reassures stakeholders that the exchange remains financially stable. In a public statement, he emphasized that customer funds are secured with a 1:1 backing, and the company is equipped to manage the losses, even if recovery of the stolen assets proves impossible.
