Cryptocurrency exchange Bybit announced on Friday that it had suffered a major cyberattack, resulting in hackers stealing approximately
$1.5 billion worth of digital currency. The exchange, which boasts over 60 million users and $36 billion in daily trading volume, described the attack as highly sophisticated, with perpetrators manipulating smart contract logic and altering the signing interface to gain unauthorized access to the Ethereum (ETH) Cold Wallet.
As a result of the breach, over 400,000 ETH and stETH were transferred to an unidentified address, prompting concerns about security vulnerabilities. Bybit suggested that a potential flaw in the user interface of Safe.global may have been exploited during the transaction process. However, the company did not disclose further technical details on how the attack was executed.
Following the news, withdrawal requests surged, but Bybit reassured users that their funds remained safe despite possible delays in processing. CEO Ben Zhou emphasized that the exchange remains financially stable, stating, "Bybit is solvent even if this hack loss is not recovered. All client assets are 1-to-1 backed, and we can cover the loss."
Bybit further reassured users by claiming it has more than enough assets to cover the stolen funds, with total assets under management (AUM) exceeding $20 billion. The exchange also mentioned it would utilize a bridge loan if necessary to ensure the continued availability of user funds.
This attack adds to the growing trend of cybercrime in the cryptocurrency sector. According to Chainalysis, crypto-related theft surged in 2024, marking the fifth time in the past decade that total losses surpassed $1 billion. In 2024 alone, cybercriminals stole $2.2 billion, representing a 20% year-over-year increase.
The Bybit breach raises renewed concerns about security vulnerabilities in decentralized finance (DeFi) platforms and exchanges, highlighting the need for enhanced security measures and more robust risk management strategies in the crypto industry.
