Bybit Suffered a Major Breach, CEO Confirm $1.5B Eth Hack 

• Bybit has experienced a Ethereum cold wallet hack resulting in the loss of $1.5B
• Bybit CEO Has admitted to the hack but has assured users of the safety of their assets

Bybit recently experienced a security breach involving its Ethereum cold wallet. The issue arose when a transaction was authorized to transfer funds to a warm wallet, but the interface displayed misleading details. 

In a recent security incident, Bybit, one of the most prominent cryptocurrency exchanges, experienced a breach on the inside, involving its Ethereum (ETH) multisignature cold wallet. 

One hour prior to the disclosure of this hack, the cold wallet carried out a transfer to a warm wallet. This transaction was masked, and signers saw what appeared to be a legitimate address and a trusted URL from transaction processor network safe, this made the transfer seem secure. 

However, the actual signing request modified the smart contract’s logic, allowing an attacker to take control of the wallet. As a result, all ETH stored in it was moved to an unknown destination. 

Consequently, the attacker gained control over the compromised cold wallet and transferred all its ETH holdings to an unidentifiable wallet address. 

ByBit CEO Zhou Has Admitted to the 1.5b Hack

However Ben Zhou the CEO came out to clarify that all other wallets are fine; hot wallets, warm wallets. “The only cold wallet that was hacked was ETH cold wallet. ALL withdrawals are NORMAL”- he added.

The CEO has assured users that Bybit is financially stable enough to give customers their funds even if the stolen funds are not retrieved as all client holdings are fully backed on a one-to-one basis.

However X users have advised users to  remain vigilant and adopt best practices for securing their crypto assets, enabling two-factor authentication, regularly updating passwords, and staying informed about phishing attempts and even moving their crypto assets to other exchanges. In the midst of all this, Ethereum has fallen by 4%. 

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