Bybit's Historic Hack: $1.46B Ethereum Stolen, CEO Leads Swift Recovery

Bybit, one of the world's largest cryptocurrency exchanges, recently suffered a historic hack, resulting in the loss of over $1.46 billion in Ethereum. The attack primarily targeted Bybit's Ethereum multi-signature cold wallet, which was used for daily trading operations. According to Lookonchain, hackers exploited a phishing vulnerability to manipulate the signing interface, allowing them to drain $1.23 billion worth of ETH.

Despite the massive setback, Bybit's CEO Ben Zhou led the company through a rapid recovery. The exchange acted immediately, securing emergency loans, using investor deposits, and making direct ETH purchases to cover the stolen amount. Within just two days, Bybit had fully recovered its holdings, showcasing its commitment to user protection. Zhou assured users that their funds remained safe and emphasized Bybit's financial strength.

Bybit quickly recovered its lost ETH by pulling funds from different sources. The biggest chunk came from private deals, bringing in 157,660 ETH ($437.8 million), while crypto exchanges added another 109,033 ETH ($304.1 million). Large investors and institutions lent 47,800 ETH ($127.5 million), and Bitget chipped in with a 40,000 ETH loan ($106 million). Smaller private deals contributed 22,609 ETH ($61.8 million), and various investors sent amounts between 2,200 ETH ($6 million) and 20,000 ETH ($53.7 million). This combined effort helped Bybit fully replace the stolen funds in record time.

While Bybit's efforts were praised by many, some crypto analysts, such as Hermes Psychopomp, questioned the exchange's claim of fully recovering its losses. Psychopomp pointed out that since the exchange used loans, it still owes money. He criticized the crypto industry for making things sound better than they are.

With Bybit securing the lost ETH, buying pressure in the market has eased, leading to a decline in Ethereum's price, which dropped from $2,800 to around $2,700 as the artificial demand subsided. Meanwhile, Bybit is actively tracking the stolen funds, which are believed to be in the hands of North