Bybit Suffers Historic $1.46 Billion Ethereum Hack, Shaking Crypto Markets

Bybit, a leading cryptocurrency exchange, has fallen victim to one of the largest security breaches in digital asset history. Reports indicate that hackers stole approximately $1.46 billion in Ethereum (ETH) from Bybit’s hot wallets, sending shockwaves across the crypto industry.

CEO Ben Zhou confirmed the attack, revealing that a hacker compromised an ETH cold wallet and transferred all its assets to an unidentified address. The breach was initially detected when on-chain data showed a massive 401,346 ETH ($1.13 billion) transfer from Bybit’s hot wallet to an unknown destination. This incident triggered a sharp 4% decline in Ethereum’s market value as the stolen funds began circulating.

Zhou assured users that all other cold wallets remained secure and that withdrawal services were functioning normally. According to Bybit, the breach was executed through a sophisticated phishing attack, where the hacker tricked wallet signers into approving a smart contract change via a fraudulent user interface. This gave the attacker full control over the wallet, leading to the massive theft.

Security analysts have compared the Bybit hack to similar breaches at WazirX and Radiant Capital in 2024, highlighting the recurrence of advanced phishing tactics. In the immediate aftermath, nearly $200 million in Lido Staked Ether (stETH) was sold within 30 minutes, intensifying market instability.

As investigations continue, experts stress the importance of enhanced security measures for cryptocurrency exchanges. This attack underscores the vulnerabilities in digital asset storage and the urgent need for stronger cybersecurity protocols to protect users and institutional funds. Further updates are expected as Bybit works to mitigate the impact of this unprecedented hack.