#BybitSecurityBreach on February 21, 2025, the crypto exchange Bybit suffered a major hack, resulting in the loss of approximately $1.5 billion worth of Ethereum (ETH) from one of its cold wallets.
Bybit's CEO, Ben Zhou, confirmed that the hack targeted their Ethereum multisignature cold wallet. The transaction signers saw what to be a normal user interface, but the actual signed message altered the smart contract logic, allowing the hacker to take control and transfer all ETH to an unknown address.
Despite the breach, Zhou reassured users that withdrawals remained operational and that customer funds were backed 1:1, stating that Bybit remains solvent even though the stolen funds cannot be recovered.
This attack is among the largest in crypto history, surpassing previous incidents such as the $625 million Ronin Network hack in March 2022. Following the news, Ethereum’s price dropped by approximately 6%, and many users began withdrawing funds from the platform.
Bybit is now collaborating with blockchain experts to track and recover the stolen funds while conducting an in-depth investigation to understand how their cold wallet security was compromised.
This incident highlights the ongoing security challenges in the crypto industry and the need for enhanced protection measures to prevent future breaches.