"Bybit Hacked: $1.5B in Crypto Stolen, Ethereum Plunges"

On February 21, 2025, a significant security breach occurred at Bybit, one of the world's largest cryptocurrency exchanges. The incident, which involved the theft of approximately $1.5 billion in cryptocurrency, was first reported on X (formerly Twitter) by prominent crypto experts.

Whale Alert, a blockchain tracking service, reported that around 401,346 ETH, valued at approximately $1.13 billion, was allegedly transferred from Bybit's hot wallet to an unknown address. Cybersecurity experts from PerkShield also noted the suspicious transfer. Ben Zhou, the founder and CEO of Bybit, later confirmed the hacking of one of the exchange's cold wallets that stored ETH. Official confirmation subsequently came from the exchange's official account.

The hacker exploited a vulnerability in Bybit's multisignature cold wallet, employing a UI spoofing technique to trick signers into approving a transaction that altered the smart contract logic of the wallet. This allowed the hacker to gain control over a specific ETH cold wallet and transfer all tokens to an unknown address.

Subsequently, it was reported that $560 million in USDT was moved from Bybit's cold wallet to a hot wallet. Experts from Arkham indicated that two minutes before the funds were withdrawn, the hacker rewrote Bybit's secure multisignature wallet to delegate calls to a malicious contract. According to Meir Dolev, co-founder and CTO of the cybersecurity company Cyvers, the hacker used a legitimate transaction as cover, allowing users to sign it without understanding its essence. This gave the hackers control over the wallet, eliminating the need for additional signatures.

Bybit emphasized that all other cold wallets remained secure, and the exchange did not halt withdrawals. In an official announcement, the company stated, "We want to assure our users and partners that all other Bybit cold wallets remain fully protected. All client funds are safe, and our operations continue as usual without any disruptions." The company also added that it is investigating the incident and welcomes assistance from any teams experienced in blockchain analytics, asset tracking, and fund recovery.

The price of Ethereum reacted sharply, dropping 3% within minutes due to large-scale liquidations. Nearly $200 million in Lido Staked Ether (stETH) was sold within