A major cryptocurrency exchange Bybit has experienced a security breach resulting in the loss of approximately $1.46 billion worth of Ethereum (ETH) from one of its cold storage wallets. The incident, confirmed by Bybit's CEO Ben Zhou, ranks among the largest cryptocurrency security breaches in recent history.
The sophisticated attack involved manipulation of the exchange's multisig wallet interface, where attackers masked the signing interface to display legitimate-looking information while secretly modifying the underlying smart contract logic. This deception led authorized signers to unknowingly approve malicious changes, giving attackers control over the affected ETH cold wallet.
The stolen assets include:
- 401,347 ETH ($1.12 billion)
- 90,376 stETH ($253 million)
- 15,000 cmETH ($44 million)
- 8,000 mETH ($23 million)
In response to the breach, Bybit has launched an investigation with blockchain forensic experts and partners. The exchange is actively seeking assistance from teams with expertise in blockchain analytics and fund recovery to trace the stolen assets.
Despite the magnitude of the breach, Bybit maintains that customer funds remain secure. CEO Zhou emphasized that all client assets are fully backed at a 1:1 ratio, and the exchange can cover any potential losses if the stolen funds are not recovered. The platform's other cold wallets were unaffected, and withdrawal operations continue to function normally.
Blockchain investigators have noted that the attacker has already begun moving the stolen funds, splitting 10,000 ETH across 39 different addresses. Security teams are working to blacklist these addresses across all relevant blockchain networks to prevent further movement of the stolen assets.
The incident highlights ongoing security challenges in the cryptocurrency industry, where sophisticated attacks continue to target even well-established platforms with advanced security measures.