"Bybit's $1.5B Crypto Heist: Cold Wallet Compromised, Users Unharmed"

Bybit, a leading cryptocurrency exchange, has confirmed a significant security breach resulting in the loss of approximately $1.5 billion in digital assets. The incident, which has sent shockwaves through the cryptocurrency industry, appears to have targeted the exchange's Ethereum (ETH) multisig cold wallet.

The breach was carried out using a sophisticated strategy that tricked the actual wallet signers into approving a change in the smart contract logic. Cybersecurity experts are currently assessing the situation to determine the extent of the damage and the methods used by the hackers.

The exchange has reassured users that, apart from the stolen assets, all other parts of the Bybit cryptocurrency system, including "hot," "warm," and cold wallets, remain secure and operational. However, concerns have been raised about the implications of the breach, particularly regarding the security of cold wallets and the dangers of blind signing.

The attack involved a deceptive transaction that manipulated the signing process, tricking the wallet signers into approving a malicious smart contract logic change. After the contract logic was altered, the hacker was able to send all the ETH in the cold wallet to an unknown address in mere minutes.

The assault is reminiscent of previous breaches in the cryptocurrency world, such as those affecting WazirX and Radiant Capital. In these instances, hackers exploited vulnerabilities in blind signing to commandeer user wallets. In Bybit's case, the hacker reimplemented the exchange's multisig Safe wallet and redirected calls to a malicious contract, making it appear as if there were sufficient signatures authorizing the withdrawal of funds from the affected wallets.

Bybit's leadership, including Co-Founder and CEO Ben Zhou, has provided reassurances to users, affirming the exchange's solvency even if the entire $1.5 billion loss is not recovered. All of Bybit's clients' assets remain 1:1 backed, and the company can cover the loss while leaving user funds untouched. The CEO also clarified that the breach only affected the ETH cold wallet, and all other wallets remain secure. Withdrawals and deposits on the platform are normal, and there is no threat to any part of the exchange's infrastructure.

In response to the incident, Bybit is working in close cooperation with cybersecurity specialists to assess the extent of the breach and ensure that similar