Bybit Hack: Exchange Loses Over $1.1 Billion in Ethereum in One of the Biggest Security Breaches Ever

Bybit CEO Ben Zhou confirmed the breach on Twitter, stating that hackers targeted the exchange's Ethereum cold wallet. Over 401,000 ETH was transferred to an unknown wallet before being distributed across more than 40 different addresses.

Cryptocurrency exchange Bybit has suffered one of the largest security breaches in history, losing over $1.1 billion in Ethereum.

The hack sent shockwaves across the crypto market, causing Bitcoin and Ethereum prices to fall sharply.

Bybit, which ranks among the biggest cryptocurrency exchanges, confirmed on Friday that hackers had targeted its Ethereum cold wallet, transferring over 401,000 ETH from the cold storage to an unknown wallet, which then proceeded to distribute the stolen funds across more than 40 different addresses.

According to Bybit CEO Ben Zhou, the exchange was conducting a routine transfer between its cold and hot wallets when the breach occurred. Despite security protocols, the attacker managed to gain access and execute fraudulent transactions.

Bybit assured users that their funds remain secure despite the massive theft. In a statement to X, Zhou said:

“Bybit is solvent even if this hack loss is not recovered, all of clients’ assets are 1 to 1 backed, we can cover the loss.”

The exchange, which manages over $20 billion in assets, said it would cover the losses using its treasury or secure a bridge loan to ensure withdrawals remain unaffected.

Following the hack, Bybit saw a surge in withdrawal requests—nearly 100 times higher than normal.

According to Zhou, the exchange processed 70% of these withdrawal requests within hours. However, Ethereum withdrawals remain temporarily paused since the stolen funds were in ETH.

Cyberscurity firm Cyvers provided further insight into the attack, stating that the attacker likely used a backdoor to gain access to Bybit's system and managed to bypass the exchange’s security measures during a cold wallet transfer.

According to Cyvers, the attacker's footprints suggest they may have been targeting Bybit for some time, with their presence on the exchange's network first detected in early March.

The massive theft from Bybit has triggered a sharp decline in the crypto market, causing Bitcoin and Ethereum to drop significantly.

According to CoinGecko, Bitcoin fell by over 4% in the last 24 hours, trading at an average price of $44,000 at the time of writing.

Meanwhile, Ethereum also saw a significant decrease of over 7% in the last 24 hours, with an average trading price of around $3000 at the time of writing.

The decline in Ethereum’s price is directly linked to the Bybit hack, as the stolen funds were entirely in ETH.

The exchange is now working with law enforcement agencies and blockchain security firms to track the stolen funds. Bybit also plans to strengthen its security systems and restore investor confidence.