In a stunning development that has shaken the cryptocurrency world, hackers have successfully breached Bybit's offline Ethereum wallet, making off with an estimated $1.46 billion in what could be the largest cryptocurrency exchange theft to date.
Bybit CEO Ben Zhou confirmed the security breach, revealing that attackers specifically targeted one of the exchange's cold storage Ethereum wallets. The incident came to light after blockchain analyst ZachXBT identified suspicious transactions moving massive amounts of cryptocurrency to a new wallet.
The stolen assets included 401,346 ETH (valued at approximately $1.1 billion), along with substantial amounts of MegaETH and staked Ether. The attackers quickly began liquidating their ill-gotten gains, with about $200 million in staked Ether already being sold on decentralized exchanges.
The market reacted swiftly to the news, with Ethereum's price dropping 4% following the massive sell-off. The cryptocurrency was trading at $2,668.18, representing a 2.4% decline according to CoinGecko.
Zhou moved to calm investor concerns, stating that Bybit's hot wallet, warm wallet, and other cold storage facilities remain secure and operational. He emphasized that the exchange maintains sufficient reserves to cover customer assets even if the stolen funds cannot be recovered.
This attack surpasses previous major cryptocurrency heists, including the Ronin Bridge exploit ($650 million), CoinCheck ($530 million), and Mt. Gox ($470 million) incidents. The breach highlights growing security concerns in the cryptocurrency sector, where stolen funds exceeded $2.2 billion in 2024 alone.
The incident occurs amid rising cryptocurrency theft rates, with blockchain analysis firm Chainalysis reporting a 21% year-over-year increase in platform attacks. This trend shows no signs of slowing, as crypto exchange hacks are predicted to continue rising in coming years.
Bybit has launched an investigation into the incident, though details about how the attackers managed to compromise the cold wallet remain unclear. The cryptocurrency community watches closely as this unprecedented case unfolds, raising new questions about the security of digital assets.