Bybit, the Dubai-based crypto exchange, recently experienced one of the biggest hacks in cryptocurrency history. According to the latest information, Bybit has reportedly lost Approximately $1.5 billion worth of Ethereum. The attack compromised Bybit’s cold wallet, an offline storage system built for advanced security. This security breach has created tension among the users and led to the mass withdrawal of over $4 billion. Ben Zhou, the CEO of Bybit, stated that they had already secured almost 80% of the Ethereum that had been stolen as a bridge loan to provide them with liquidity, which would help them with the liquidity crunch, so they could get through that crucial period.
Bybit Hit by the Biggest Hack in the Crypto Landscape; Hackers Swooped 1.5 Billion!
Bybit, one of the most reputed cryptocurrency exchanges in the world, was hacked for around $1.5 billion in Ethereum on Friday. Hackers reportedly stole around ETH worth of 1.5 billion from their cold wallet. The attackers targeted one of Bybit’s Ethereum cold wallets, a storage method generally considered an enhanced method to store cryptocurrencies due to its disconnection from the internet.
But, hackers managed to swoop around 1.5 billion worth of tokens from these wallets, as per the available information, the hackers reportedly stole ETH and its related tokens like liquid-staked Ether (stETH), Mantle Staked ETH (mETH) in a series of quick transactions. Blockchain analytics organizations like Arkham Intelligence and Elliptic traced the stolen funds and found that the funds had been transferred to various accounts and offloaded. Security analysts and blockchain researchers presume that North Korean Hackers might be responsible for the attack.
Ben Zhou, the CEO of Bybit, Confirmed that the Bybit ETH multisig cold wallet had made a transfer to their warm wallet about an hour prior. He mentioned that the specific transaction was masked and that all the signers had seen the masked UI, which displayed the correct address, with the URL (Uniform Resource Locator) coming from @safe. However, he noted that the signing message was intended to change the smart contract logic of their ETH cold wallet. As a result, he indicated that a hacker had taken control of the specific ETH cold wallet they had signed and transferred all the ETH in the cold wallet to an unidentified address. He reassured everyone that all other cold wallets were secure and that all withdrawals were normal.
Bybit has Secured a ‘Bridge Loan’ to secure the 80% of the $1.5 billion
Ben Zhou has officially confirmed that Bybit has secured a bridge loan to cover 80% of the stolen Ethereum. As per the live stream of Ben Zhou, the details of the partners who provided the bridge loan are not mentioned or anonymous. The CEO of Bybit stated that they would not immediately buy Ether to replenish the lost cryptocurrency. He mentioned that even if they wanted to buy, it was too large an amount to be moving around. He also noted that they had already secured almost 80% of the stolen Ethereum as a bridge loan to provide them with the liquidity needed to help with the liquidity crunch, allowing them to navigate this crucial period.
Ben Zhou asked to be patient and supportive at this time. The latest data suggest that the customers have already withdrawn at least $500 million from Bybit on Friday itself. Zhou stated that they do not have any plan to suspend the withdrawals at the moment., and they are still receiving all the withdrawal requests.
Ben Zhou claimed that they did not have any plans to suspend or cancel withdrawals at that moment and that they were still receiving all the withdrawal requests. He mentioned that Bybit had $20 billion in assets under management and insisted that the exchange would have no problem honoring customer withdrawals. He added that even if all Bybit clients were to withdraw, they could fulfill those withdrawals. However, he noted that they needed to borrow Ether from partner companies because customers’ Ether deposits were not entirely backed after the hack. Shunyet Jan, Bybit’s head of derivatives and institutions, added that their treasury had more than enough reserves to cover the Ethereum notional amount, but they did not have enough Ethereum at the moment.
Ben Zhou’s Response!
Ben Zhou stated that since the hack, Bybit had experienced the highest number of withdrawals they had ever seen, with a total of more than 350,000 withdrawal requests so far, and around 2,100 withdrawal requests still left to be processed. He mentioned that overall, 99.994% of withdrawals had been completed. He urged users to leave comments if their withdrawals were completed.
He acknowledged that although they had been affected by what could be the worst hack in the history of any medium, including banks, crypto, and finance, all Bybit functions and products remained operational. He noted that the entire team had been awake all night to process and respond to client questions and concerns, emphasizing that all hands were on deck. He reassured everyone that they were there to support them.
Ben Zhou expressed his gratitude and was overwhelmed by all the support received from partners and industry friends during the critical time of the previous night. He wanted to extend his gratitude to all the friends and partners who offered assistance in any way. He stated that he was truly grateful and acknowledged that more help would be needed in the future. He also conveyed that although it was a tragic event for Bybit, the industry had demonstrated strength by uniting together during this difficult time, and he believed that they could only grow bigger from that point on. He affirmed that as a team, they were prepared to protect their industry together.
