The cryptocurrency exchange Bybit recently made waves in the news for falling victim to one of the largest hacks of the year. According to ZachXBT, a blockchain investigator, the exchange possibly suffered losses amounting to around $1.46 billion in Ethereum. Despite this significant setback, the co-founder and CEO, Ben Zhou, took to social media to reassure the exchange’s users that everything is under control. In a statement posted on X, Zhou stated,
“Bybit remains financially sound even in the face of this unrecovered hack loss; all client assets are fully backed, and we have the means to cover the losses.”
Normal Operations for Bybit
The hack incident was quickly confirmed once speculation started circulating on X. In an announcement, the Singapore-based crypto exchange disclosed that it had detected unauthorized activities in one of its Ethereum cold wallets. The exchange shed light on the hack that unfolded on its platform with the following explanation,
The breach took place when our ETH multisig cold wallet initiated a transfer to our warm wallet. Regrettably, the transaction was manipulated through a sophisticated attack that altered the signing interface, showing the correct address while modifying the underlying smart contract logic. Consequently, the attacker gained control over the affected ETH cold wallet and shifted its contents to an undisclosed address.
Moreover, Bybit affirmed that its operations would continue uninterrupted, assuring users that “all funds are secure, and our services are running smoothly without any disruptions.” The exchange emphasized its commitment to transparency and security, promising users regular updates. While Bybit has acknowledged the hack, an official statement disclosing the precise amount and types of cryptocurrencies lost has yet to be released.
The situation is still unfolding.