Bybit Suffers $1.44B Ethereum Hack Amid Cold Wallet Breach

Cryptocurrency exchange Bybit has confirmed a major security breach, involving its Ethereum (ETH) cold wallet, in an incident that could significantly impact Ethereum’s price action.

In a recent post on X (formerly Twitter), Bybit revealed that a “sophisticated attack” occurred during a transfer from its ETH multisig cold wallet to a warm wallet, allowing the attacker to manipulate the transaction process.

Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing…
— Bybit (@Bybit_Official) February 21, 2025

Hacker Drains Over $1.44 Billion in Assets

According to Bybit, the attacker exploited the signing interface, displaying the correct address while altering the underlying smart contract logic. This deception granted the hacker control of the cold wallet, leading to the unauthorized transfer of significant ETH holdings.

The estimated total loss from the breach is approximately $1.44 billion, including:

401,347 ETH (valued at $1.12 billion)
90,376 stETH (worth $253.16 million)
15,000 cmETH (valued at $44.13 million)
8,000 mETH (totaling $23 million)

CEO Ben Zhou Assures Client Funds Are Safe

In response, Bybit’s security team has mobilized alongside leading blockchain forensic experts to investigate the breach and track the stolen assets. The exchange has also invited external blockchain analytics teams to aid in fund recovery efforts.

Bybit’s co-founder and CEO, Ben Zhou, reassured users that:

All other cold wallets remain secure.
Client funds are unaffected and fully backed.
Operations continue as normal, with withdrawals uninterrupted.

“The only cold wallet that was hacked was the ETH cold wallet,” Zhou stated.
He emphasized that Bybit remains solvent and capable of covering losses, ensuring all client assets are backed one-to-one.

Ethereum Price Reacts to the Hack

Following the security breach, ETH experienced a 5% drop, falling to $2,675. However, it has since rebounded to $2,766, showing signs of recovery despite market concerns.

As Bybit works to recover lost funds, the incident raises questions about exchange security and could impact investor confidence in centralized platforms.

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