Bybit, one of the largest cryptocurrency exchanges, has suffered a major security breach that has stolen over $1.4 billion worth of cryptocurrencies, including around 401,347 ether (ETH).
Reason for the breach:
Bybit CEO Ben Zhou explained that the attack was caused by exploiting a vulnerability in the platform’s cold wallet smart contracts. The attackers created a fake user interface that appeared legitimate, tricking the Bybit team into executing a transaction through this interface. The transaction included malicious code that modified the wallet’s smart contract logic, giving the attackers full control over the digital assets and stealing large amounts of ether without initially raising suspicion.