Singapore-based cryptocurrency exchange Bybit has suffered a major security breach, with hackers stealing over $1 billion in Ethereum and other tokens, according to initial reports.
Bybit CEO Ben Zhou confirmed the incident on X, revealing that attackers exploited a vulnerability in the exchange’s ETH cold wallet multisig system. Zhou explained that signers were deceived into approving a malicious transaction that altered smart contract logic, granting the hacker control over the wallet and its assets.
“The transaction was ‘musked’—all the signers saw the correct address, and the URL was from Safe, but the signing message was to change the smart contract logic of our ETH cold wallet,” Zhou stated.
Security experts suggest “musked” refers to a manipulated UI that concealed the true destination of the transaction, misleading Bybit’s team into unknowingly authorizing the fraudulent transfer.
The stolen funds, including 400,000 ETH (~$1.1 billion), 90,000 stETH, 15,000 cmETH, and 8,000 cETH, were initially sent to an address beginning with 0x476. The hacker then dispersed the assets across multiple wallets and began converting them through decentralized exchanges such as Uniswap, Paraswap, and KyberSwap.
Despite the massive breach, Bybit maintains that user funds are secure.
“Bybit is solvent even if this hack loss is not recovered. All client assets are 1:1 backed, we can cover the loss. Withdrawals remain normal,” Zhou reassured.
However, BitMEX Research estimates that approximately 75% of Bybit’s ETH deposits were compromised in the attack.
The breach occurred during scheduled maintenance on Bybit’s live server, raising suspicions among security analysts regarding a potential connection between the downtime and the exploit.
Bybit has not yet confirmed whether law enforcement or blockchain security firms are involved in the investigation. This remains a developing story, with further updates expected as more details emerge.
Source: Swifteradio.com
