Bybit has experienced a record-breaking hack in which $1.46 billion worth of ETH was stolen, involving the transfer of 401,346 ETH and significant amounts of staked ether to an unknown wallet.
The attack caused a sharp market decline, liquidating over $100 million in leveraged positions, before a quick rebound of Bitcoin and Ethereum.
Bybit assures its solvency and the security of client funds despite the loss, but the event renews the debate on the security of exchanges and the need to self-manage assets.
An Unprecedented Attack on Bybit’s Ethereum Funds
The cryptocurrency exchange platform Bybit became the target of a massive hack, resulting in the loss of $1.46 billion worth of ETH. According to on-chain analysis, 401,346 ETH, approximately $1.1 billion, was transferred to an unknown wallet, along with significant amounts of staked ether (stETH and mETH). These funds are gradually being swapped on decentralized platforms, causing slight panic and contributing to Ethereum’s drop below $2,700 before bouncing back.
Ben Zhou, CEO of Bybit, confirmed that the attack targeted a specific Ethereum cold wallet, while assuring that the rest of the exchange’s funds remain secure and that withdrawals are operating as usual.
A Market Shockwave
The attack immediately caused a price drop, with Bitcoin briefly falling below $97,000 and Ethereum declining by 4%. The event liquidated over $100 million in leveraged long positions, exacerbating selling pressure. However, the panic was short-lived: Bitcoin has already rebounded to $98,300, and Ethereum has risen to $2,750, indicating a rapid absorption by the market.
This hack stands as the largest in absolute value, surpassing historical attacks like those on Mt. Gox ($470 million), CoinCheck ($530 million), and the Ronin bridge ($650 million). It raises questions about the security management at Bybit and the need to reinforce exchange protections against sophisticated threats.
Bybit Assures Its Users: The Exchange Is Solvent
Bybit’s CEO, Ben Zhou, sought to reassure its users:
Bybit remains solvent even if the hack-related loss is not recovered. All client assets are covered 1:1; we can absorb the loss.
In fact, on-chain data shows significantly larger amounts held in Bybit‘s reserves, allowing the exchange to likely handle further operations. Nevertheless, it is crucial to prioritize the security of your funds. Therefore, Coin Academy advises you to always withdraw your funds from centralized platforms at the slightest sign of doubt.
