Cryptocurrency exchange Bybit has fallen victim to a massive hacking attack that has stolen nearly $1.5 billion from its Ethereum cold wallet. About this reported CEO of Bybit Ben Zhou.
Hackers were able to bypass the protection when a multi-signature ETH cold wallet made a transfer to a warm wallet. This operation was obfuscated, so the signers saw the correct address and the real URL, effectively signing the smart contract logic change.
As a result, the attacker gained full control of the wallet and transferred all Ethereum to an unknown address. Despite significant losses, Bybit management assures that the rest of the exchange’s wallets remain safe, and withdrawals work as usual.
The company also emphasizes that clients’ assets are secured in a 1:1 ratio, so even if the stolen funds cannot be returned, the exchange will cover the losses on its own.
