#BybitSecurityBreach As of February 21, 2025, cryptocurrency exchange Bybit experienced a significant security breach involving its Ethereum (ETH) cold wallet. The breach resulted in the theft of approximately $1.4 billion worth of assets, including 401,347 ETH (approximately $1.12 billion), 90,376 stETH ($253 million), 15,000 cmETH ($44 million), and 8,000 mETH ($23 million).

Details of the Breach:

Method of Attack: The attackers manipulated Bybit's Ethereum multisignature (multisig) cold wallet interface. They masked a transaction to appear legitimate, deceiving signers into approving a fraudulent smart contract update. This manipulation granted the attackers control over the cold wallet, enabling them to transfer the assets to an unidentified address.

Immediate Response: Bybit's CEO, Ben Zhou, confirmed the incident, assuring users that other cold wallets, as well as hot and warm wallets, remained secure. He emphasized that all withdrawal operations continued as normal.

Market Impact:

The substantial liquidation of stolen assets contributed to a decline in Ethereum's price, which dropped by approximately 4%. Bitcoin also experienced a decrease of over 1.5% during the same period.

Bybit's Ongoing Actions:

Bybit's security team, in collaboration with leading blockchain forensic experts, is actively investigating the incident. They have extended an invitation to teams with expertise in blockchain analytics and fund recovery to assist in tracing the stolen assets.

This event underscores the critical importance of robust security measures and continuous vigilance within the cryptocurrency industry.