Bybit Reports Major Cyberattack: $1.5 Billion in Assets Estimated Stolen
Dubai-based cryptocurrency exchange Bybit announced on Friday, February 21, 2025, that it has fallen victim to a significant cyberattack, resulting in the theft of several assets. According to reports, this incident may mark one of the largest hacks in the history of cryptocurrency.
The Incident
In a series of posts on the social media platform X, Bybit confirmed that an attacker managed to gain control of one of its Ethereum (ETH) cold wallets during a routine transfer to a warm wallet. Bybit’s security team detected unauthorized activity connected to this cold wallet, alerting them to the breach.
"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," the company stated in its initial announcement.
Estimated Loss and Reaction
Bloomberg reported that analysts estimate the stolen assets to be worth nearly $1.5 billion, a figure that represents about 9% of Bybit’s total assets, which were valued at approximately $16.2 billion prior to the breach. Rob Behnke, co-founder and executive chairman of security firm Halborn, described the hack as potentially the "largest incident ever, not just crypto."
In response to the incident, Bybit has engaged blockchain forensic experts to investigate the breach and trace the stolen assets. The company also reassured users that all other cold wallets remain secure and that client funds are intact, asserting, "All client funds are safe, and our operations continue as usual without any disruption."
Financial Security and Operations
Co-founder and CEO Ben Zhou addressed concerns during a livestream on X, emphasizing Bybit’s financial stability. "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," he stated. Following the attack, he reported that the exchange was processing over 70% of withdrawal requests within a short time.
Despite the unsettling news, the overall market impact saw the prices of the two largest cryptocurrencies, Bitcoin and Ethereum, dip slightly. However, the levels at which they traded remained consistent with values seen earlier in the month.
Recent Developments and Future Outlook
This news comes shortly after Bybit launched its Bybit Pay solution in Brazil, allowing users to transact in both fiat currency and cryptocurrency through integration with the Brazilian Pix payment system. Additionally, it coincided with the U.S. Securities and Exchange Commission (SEC) announcing their agreement in principle to dismiss an enforcement case against another crypto exchange, Coinbase.
As the investigation continues, Bybit seeks to maintain trust within its user base, emphasizing its commitment to security and operational integrity amid ongoing scrutiny in the cryptocurrency space.
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