The cryptocurrency world was rocked today by news of a massive security breach at the Bybit exchange. CEO Ben Zhou confirmed on X (formerly Twitter) that an Ethereum cold wallet was compromised, leading to the transfer of approximately 401,346 ETH, valued at $1.1 billion, and various amounts of staked Ether (stETH) to an unknown address. Blockchain data suggests the total loss may be as high as $1.46 billion, with some of the stolen assets already being liquidated on decentralized exchanges.
According to blockchain investigator ZachXBT, “suspicious outflows” totaling $1.46 billion were detected from the affected Bybit wallet. Etherscan data corroborates the movement of the substantial ETH and stETH holdings. Zhou’s statement acknowledges that a hacker gained control of the specific ETH cold wallet and transferred all its contents. He emphasized that other cold wallets remain secure and that withdrawals are functioning normally.
While Zhou attributes the incident to a “security incident,” the scale of the potential losses raises serious concerns. If the full $1.46 billion figure is accurate, this would eclipse previous major cryptocurrency hacks, dwarfing incidents like the Mt. Gox collapse ($470 million), the CoinCheck theft ($530 million), and the Ronin Bridge exploit ($650 million).
The news of the hack has already impacted the market, with Ether (ETH) and Bitcoin (BTC) both experiencing price drops following the announcement. 1 The incident underscores the inherent risks associated with cryptocurrency exchanges and the importance of robust security measures. Bybit’s prompt response and transparency are crucial in maintaining user trust during this challenging time. Further investigation into the breach is expected, and the cryptocurrency community will be closely watching to see how this situation unfolds. The sheer magnitude of the potential loss serves as a stark reminder of the vulnerabilities that still exist within the rapidly evolving world of digital assets