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The post Biggest Crypto Hack in History: Market Crashes After Bybit Faces $1.5 Billion ETH Hack appeared first on Coinpedia Fintech News The crypto market experienced a significant downturn after Bybit, a prominent cryptocurrency exchange, announced a devastating hack involving $1.5 billion worth of cryptocurrencies. This incident marks the largest crypto hack to date. Recent updates, including statements from the CEO, confirm that Bybit was compromised, resulting in the loss of approximately $1.5 billion in Ethereum. Bybit Faces Biggest Hack in History Bybit, the Singapore-based centralized crypto exchange, appears to have been hacked. Early estimates suggest the exchange has lost over $1.46 billion worth of ETH, though the investigation is ongoing. The CEO described the hack on Bybit’s Ethereum multisig cold wallet, where attackers manipulated the signing interface to trick signers into approving a change in the wallet’s smart contract logic, allowing the theft of all ETH in that wallet. CEO Ben Zhou said, “Bybit ETH multisig cold wallet just made a transfer to our warm wallet about 1 hr ago. It appears that this specific transaction was musked, all the signers saw the musked UI which showed the correct address and the URL was from Safe. However, the signing message was to change the smart contract logic of our ETH cold wallet. This resulted Hacker took control of the specific ETH cold wallet we signed and transfered all ETH in the cold wallet to this unidentified address. Please rest assured that all other cold wallets are secure. All withdraws are NORMAL. I will keep you guys posted as more develops, If any team can help us to track the stolen fund will be appreciated.” The story will be updated.

Bybit CEO Ben Zhou confirmed in a Friday livestream that the $1.5 billion hack against his crypto exchange lost the firm the vast majority of its customers’ ETH holdings. “I believe it was around seventy percent,” Zhou told viewers, when asked how much was lost relative to the company’s ETH assets under management. “We normally keep sixty to seventy prevent in the cold wallets, and I believe this was the amount.” What Caused The Hack? The breach, first flagged by on-chain sleuth ZachXBT and other high profile accounts on Friday, saw over 400,000 Ether suspiciously leave Bybit’s cold wallet address, before rapidly being swapped its staked mETH and stETH tokens for ETH. Security experts at Cyvers told CryptoPotato that the hackers tricked those controlling the keys to Bybit’s cold wallet into signing a malicious transaction which, from the signers’ perspectives, looked honest at the time. Jack Sanford, CEO of Sherlock DeFi, had similar findings, said the transaction would have changed the rules of the multisig wallet’s smart contract to bend to the hackers’ wishes. Exact details on how the signers were fooled remain unknown. “The UI itself could have been compromised, [or] Each of these honest people could have had their actual computer compromised,” wrote Sanford. ZachXBT, a popular on-chain detective for large crypto hacks, submitted “definitive proof” on Friday that the hack was pulled off by the North Korean “Lazarus Group,” according to Arkham Intelligence. Lazarus are the most notorious hackers in the world, attacking several major crypto exchanges in the past. “TLDR myself and Josh from CF connected the Bybit hack on-chain to the Phemex hack,” said ZachXBT in response. Can Bybit Cover The Loss? Despite the seismic loss, Zhou assured followers in a tweet that all client losses remained covered by the exchange. “All client assets are 1:1 backed—we can cover the loss.” Zhou added during the stream that the exchange is reaching out to its partners in search of a “bridge loan” to support its liquidity needs as it processes “massive withdrawals” in the short term. “We actually already secured almost 80% of the Ethereum that’s been stolen as a bridge loan, to help us with the liquidity crunch.” So far, Zhou has resisted the idea of pausing exchange withdrawals. Binance co-founder Changpeng Zhao suggested that Bybit do so as a precaution – even if it spurs more fear in the market – offering his own aid if required. “1.5 billion is fear enough,” he said. “Better to be safe than sorry now.” More lightheartedly, BitMEX co-founder Arthur Hayes called on Ethereum co-founder Vitalik Buterin to “roll back the chain” to support Bybit – an action Ethereum leaders coordinated ten years ago in response to the DAO hack. The post ByBit Lost 70% Of Ethereum Holdings To Hacker, Says CEO appeared first on CryptoPotato.

🤬 Biggest hack in crypto history – Bybit lost $1.5 billion! Crypto exchange Bybit has suffered the largest hacker attack in the 15-year history of the industry. Yesterday, hackers drained $1.5 billion in Ethereum tokens, causing significant withdrawal delays. 🟡 Bybit CEO Ben Zhou announced that all withdrawals have been processed, and the system has returned to normal operation. 🟡 Users can now withdraw funds without restrictions or delays. 🟡 A full incident report and security analysis will be published in the coming days. Even though Bybit managed to restore its system, this incident sets a concerning precedent. It could lead to a loss of trust in centralized exchanges. Where do you store your crypto? 👍 — CEX 🔥 — DEX 😎 — Cold wallets

ZachXBT said that the Lazarus Group in the Bybit incident transferred 5,000 ETH to a new address, laundered the money through the eXch mixer, and bridged the funds to Bitcoin through Chainflip. Bybit CEO Ben expressed the hope that the cross-chain bridge project would help Bybit block and prevent further transfers of assets to other chains.

Bybit ETH transfer disguised 🧐 CEO Ben Zhou reports an ETH transaction from Bybit’s cold wallet to hot wallet with a disguised interface. #Bybit #ETH #SecurityAlert