Bybit Hacked: $1.1B in ETH Stolen, Multi-Signature Security Compromised

Cryptocurrency exchange Bybit has suffered a significant security breach, with hackers managing to steal approximately 514,000 Ether (ETH) from a multi-signature cold wallet. The incident, which occurred on March 20, 2023, has raised concerns about the security measures in place at the popular trading platform.

The stolen ETH, valued at around $1.1 billion at the time of the hack, was transferred to a new address controlled by the attackers. Bybit has since confirmed the incident and has taken steps to secure the remaining funds in its cold wallets. The exchange has also assured users that their hot wallets and other assets are unaffected by the breach.

The multi-signature cold wallet system is designed to enhance security by requiring multiple approvals before any transactions can be executed. However, in this case, the hackers managed to bypass the security measures and gain unauthorized access to the funds. This raises questions about the effectiveness of multi-signature wallets in preventing such attacks.

Bybit has launched an investigation into the incident and has pledged to cooperate with law enforcement agencies to track down the perpetrators. The exchange has also offered a reward of $1 million for any information leading to the recovery of the stolen funds or the identification of the hackers.

The hack on Bybit comes amidst a series of high-profile security incidents targeting cryptocurrency exchanges in recent months. In February 2023, the decentralized finance (DeFi) platform Mango Markets was hacked for $117 million, while in January, the cryptocurrency exchange WazirX suffered a security breach that resulted in the loss of $8 million.

The increasing frequency of these attacks has raised concerns about the security of cryptocurrency exchanges and the need for stronger security measures. As the cryptocurrency market continues to grow, it is essential for exchanges to prioritize the security of their platforms and protect users' assets from potential threats.