Bybit Suffers Largest-Ever Hack, Losing Cryptocurrency Worth $1.4 Billion

Bybit's Response and Impact

On the 22nd, a hack occurred at the cryptocurrency exchange Bybit, resulting in the theft of approximately $1.4 billion (approximately 220 billion yen). The breakdown of the theft was 401,347 ETH (approximately $1.12 billion), 90,376 stETH (approximately $253 million), 15,000 cmETH (approximately $44.13 million), and 8,000 mETH (approximately $23 million).

This incident is said to be one of the largest hacks ever in the cryptocurrency industry, and attention has been drawn once again to the security measures of exchanges.

According to current reports, the North Korean hacker group "Lazarus Group" is suspected to be involved.

The background to the hacking is that during the workflow of transferring funds on Bybit when the balance reaches a certain threshold, a task occurs where the destination wallet address and transaction details are checked via the official Safe website.

During this process, it is said that a fake user interface was presented to the wallet signer, making it appear as if the correct address was being displayed, which is likely why the signer approved the malicious transaction.

The scale of the leaked assets also shows the significant impact this hacking will have on the industry.

Ben Zhou's Livestream on the Latest ETH Wallet Incident LIVE now. https://t.co/mBwD9ubGIl

— Bybit (@Bybit_Official) February 21, 2025

Bybit CEO Ben Zhou made an official statement about the incident, emphasizing that all customer assets are backed up 1:1 and that the company's assets will cover the loss.

He also explained that other cold wallets were not affected and withdrawals are being processed normally, trying to ease users' concerns. It is also said that the company has already secured 80% of the stolen amount in bridge loans from partners to cover expected customer withdrawals.

The impact of this hack has begun to ripple through the broader cryptocurrency market, with Bitcoin (BTC) and Ethereum (ETH) prices declining immediately after the incident.

This event has once again highlighted the significant security risks associated with cryptocurrency exchanges. As concerns grow over the vulnerabilities in asset management at centralized exchanges, the industry is expected to focus on improving wallet security and adopting more advanced security technologies. The measures Bybit will implement moving forward, along with the industry's broader response, will be closely watched.

Reference:Bybit
Image: Shutterstock

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