Cryptocurrency exchange Bybit has been hit by one of the largest hacks in history, losing over $1.4 billion worth of Ethereum and related tokens. The attack targeted a cold wallet, exploiting advanced phishing techniques to manipulate smart contract logic and drain funds.
Bybit CEO Ben Zhou explained that hackers used a sophisticated “masked” transaction method to deceive signers into approving malicious operations without realizing it. This allowed them to gain control of the cold wallet and transfer all its contents to an unknown address.
The hack sent shockwaves through the crypto market, causing Ether’s price to drop by about 4% initially before rebounding slightly due to speculation about potential buybacks. However, after clarifications from Bybit that no large-scale ETH purchases were planned, market sentiment turned bearish amid concerns over selling pressure from the hacker.
Despite this setback, Bybit remains solvent with all client assets fully backed. The stolen funds are being tracked across multiple wallets by blockchain security teams.
