Bybit’s Historic Hack: A $1.4 Billion Crypto Heist
The cryptocurrency world was shaken on Friday as Bybit suffered a staggering security breach, resulting in the loss of over $1.4 billion in digital assets. The scale of the theft sparked immediate reactions from industry experts and analysts.
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“This is now the largest crypto theft of all time, by a significant margin,” stated Tom Robinson, co-founder and Chief Scientist at Elliptic, in an interview with The Block. “The second-largest theft was the $611 million stolen from Poly Network in 2021. In fact, this may even be the biggest single financial theft ever recorded. We’ve tagged the hacker’s addresses in our system to help prevent laundering through other exchanges.”
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Bybit confirmed on Friday that hackers drained more than $1.4 billion in ETH from its cold wallet. Reports suggest the attackers deceived Bybit’s cold wallet signers into approving a fraudulent transaction, allowing them to gain unauthorized control over the assets.
In response to the crisis, Bybit’s CEO, Ben Zhou, took to social media to calm concerns.
“Bybit remains solvent even if this loss is not recovered,” Zhou wrote on X. “All client assets are fully backed on a 1:1 basis, and we are fully capable of covering the loss.”
Hasu, strategy lead at Flashbots, also shared his perspective on X, asserting that Bybit would weather the attack.
“If you want my serious take, Bybit generates well over $1.4 billion in annual revenue,” Hasu wrote. “They have the financial strength to cover the losses and ensure customers are made whole. This won’t impact ETH since Bybit will fulfill all liabilities and repurchase the lost assets from the open market.”
Despite reassurances, the sheer size of the attack remains extraordinary, even within the volatile world of cryptocurrency. The incident serves as a stark reminder of the risks exchanges face and the need for constant vigilance in securing digital assets.
In May 2024, Japanese exchange DMM Bitcoin suffered the year’s largest crypto breach, losing over 4,500 BTC—worth more than $300 million at the time. Comparatively, FTX faced a $477 million exploit in 2022, highlighting the ongoing security challenges in the crypto industry.
Binance Founder CZ Offers Assistance
Former Binance CEO Changpeng Zhao (CZ) responded to Bybit CEO Ben Zhou’s updates regarding the attack, offering advice and support.
“Not an easy situation to deal with,” CZ wrote on X. “Might suggest halting all withdrawals temporarily as a standard security precaution. Will provide any assistance if needed.”
Arkham Intelligence Issues Bounty
Blockchain analytics firm Arkham Intelligence took action to track down the hacker by launching a bounty.
“We’ve created and funded a bounty to help identify the person or organization behind today’s [over] $1 billion Bybit hack,” the company posted on X. “Submissions will be shared with Bybit to support their investigation. Reward: 50,000 ARKM.”
Traders Express Disbelief
Professional traders voiced frustration over the attack.
“This Bybit hack really sucks,” trader Julius Stark posted on X. “As a pro trader, there isn’t a better platform in terms of accurate data and UI. They are one of the good guys.”
Security Experts Highlight Human Error
Titan, co-founder and CEO of Solana swap platform Titan, emphasized the risks associated with human oversight in security processes.
“The Bybit hack underscores the importance of human involvement in transaction approvals,” he told The Block. “If people can’t properly inspect transactions in a multi-sig setup, they eventually approve anything that comes through.”
A spokesperson from CertiK, a blockchain security firm backed by Sequoia Capital, Tiger Global, and Goldman Sachs, weighed in on the implications of the attack.
“Given the scale of the alleged exploit, this breach raises serious concerns about centralized exchange security and the evolving threat landscape in Web3,” the representative told The Block.
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