Bybit Hack Incident

Bybit CEO Claims All Funds Are SAFU
Bybit’s CEO asserts that all funds are safe and the exchange will maintain normal operations despite a significant hack.

Hack Details and Losses
While the hack has been confirmed, Bybit has yet to disclose the exact amount lost. Blockchain investigator ZachXBT estimates losses to exceed $1.4 billion.

Crypto exchange Bybit has made headlines after being a victim of one of this year’s largest hacks. Reports suggest losses could be around $1.46 billion in Ethereum. Despite this, CEO Ben Zhou has reassured users via social media that the exchange remains solvent, stating,
> “Bybit is solvent even if this hack loss is not recovered; all client assets are 1-to-1 backed, we can cover the loss.”

Business as Usual for Bybit

The hack was swiftly confirmed after initial speculations.
The exchange reported detecting unauthorized activity in one of its ETH cold wallets. In their statement, Bybit explained,
> 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 interface, displaying the correct address while altering the underlying smart contract logic. As a result, the attacker was able to gain control of the affected ETH cold wallet and transfer its holdings to an unidentified address.

Bybit reassured users that operations continue unchanged, claiming,
> All funds are safe, and our operations continue as usual without any disruption.

The CEO emphasized that withdrawals would function normally. While a hack occurred, the exchange has confirmed that only the ETH cold wallet was compromised, adding,
> Bybit hot wallet, warm wallet, and all other cold wallets are fine. The only cold wallet that was hacked was ETH cold wallet. ALL withdrawals are NORMAL.

Ongoing Investigations

Additionally, Safe, a non-custodial wallet on Ethereum, stated that its security team is cooperating with Bybit’s team for an investigation. They noted they had not found any evidence that their official front end was compromised but decided to pause certain Safe Wallet functions temporarily.

Ethereum Market Reaction

As reported by CoinMarketCap, the price of Ethereum (ETH) didn’t experience significant fluctuations. It was trading at $2681, with a market cap of $323.27 billion. The coin has faced a downtrend of 2.62% within the last hour and a nearly 2% drop over the past 24 hours.