In a significant security breach, cryptocurrency exchange Bybit has confirmed the loss of approximately $1.4 billion in Ethereum (ETH) from one of its cold wallets. The incident, which occurred on February 21, 2025, is considered one of the largest hacks in the history of cryptocurrency exchanges.
The breach was identified when Whale Alert, a blockchain tracking service, reported a transfer of over 400,000 ETH (approximately $1.1 billion) to an unknown wallet. Bybit's CEO, Ben Zhou, later confirmed the hack, stating that the company's Ethereum multisignature cold wallet had been compromised during a routine transfer to their warm wallet. The attackers employed a sophisticated technique that manipulated the signing interface, displaying the correct address while altering the underlying smart contract logic. This deception led the signers to unknowingly approve a fraudulent smart contract update, granting the attackers control over the wallet.
The stolen assets include 401,347 ETH (approximately $1.12 billion), 90,376 stETH ($253 million), 15,000 cmETH ($44 million), and 8,000 mETH ($23 million). The attackers have since moved the funds to multiple unknown wallets, splitting 10,000 ETH into 48 different addresses.
Despite the substantial loss, Zhou assured users that all client funds are secure and that Bybit remains solvent. He emphasized that only the Ethereum cold wallet was affected, with all other wallets remaining intact. Withdrawals and other operations continue as normal. Bybit's security team, along with external blockchain forensic experts, is actively investigating the incident to trace the stolen assets.
This event surpasses previous records, including the $620 million hack of Axie Infinity's Ronin network bridge in March 2022, making it the largest cryptocurrency hack to date.
In the wake of the breach, Bybit has suspended further transfers involving the compromised wallet and is reviewing its security protocols to prevent future incidents. The company has also called upon the broader cryptocurrency community for assistance in tracking and recovering the stolen funds.
The price of Ethereum (ETH) is currently $2,687.56, reflecting a decrease of 2.21% from the previous close.
The price of BitDAO (BIT) is currently $0.881885, reflecting a decrease of 14.79% from the previous close.
The cryptocurrency community continues to monitor the situation closely as more details emerge about the breach and the efforts to recover the stolen assets.
