Brief Summary of Bybit Exchange Hack (February 21, 2025)

Incident Overview

On February 21, 2025, cryptocurrency exchange Bybit suffered the largest hack in history, losing approximately $1.46 to $1.5 billion in Ethereum (ETH) and related tokens (such as stETH), involving over 400,000 ETH assets. Attackers forged a signature interface, tampered with smart contract logic, and deceived multi-signature wallet signers to transfer funds to multiple unknown addresses.

Attack Method

- Social Engineering and UI Deception: Hackers exploited phishing attacks to lure signers to a fake interface, approving seemingly legitimate transactions while actually tampering with contract logic.

- Multi-Sig Vulnerability Exploit: The attack targeted Bybit's ETH cold wallet, controlling funds through potential vulnerabilities in the Safe.global platform.

Market Impact

- Cryptocurrency Crash: Bitcoin dropped below $95,000, Ethereum fell over 3%, with over 170,000 liquidation incidents globally amounting to $572 million within 24 hours.

- Industry Shock: The incident was labeled as 'the largest cryptocurrency theft in history,' surpassing the 2016 DAO hack (ten times its value).

Bybit's Response

- Customer Assurance: Emphasized security of other cold wallets, 1:1 reserve support for customer assets, and normal processing of withdrawals (99.994% of requests completed).

- Fund Tracking: Collaborating with blockchain forensic experts to trace funds, initially identifying the North Korean hacker organization Lazarus Group.

Industry Warning

The incident exposed vulnerabilities in multi-signature wallets and exchange security, calling for enhanced signer training, hardware security modules (HSM), and regular audits.

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Brief Summary of Bybit Exchange Hack (February 21, 2025)

Overview

On February 21, 2025, Bybit suffered the largest cryptocurrency theft in history, with $1.46–1.5 billion in Ethereum (ETH) and stETH stolen from its multi-signature cold wallet. Hackers manipulated smart contract logic via a phishing attack, deceiving signers through a fake UI.

Attack Details

- Social Engineering: Attackers redirected signers to malicious URLs, altering transaction logic during ETH transfers from cold to hot wallets.

- Multi-Sig Exploit: Vulnerability in Safe.global’s interface allowed unauthorized fund drainage.

Market Impact

- Price Plunge: Bitcoin dropped below $95k, ETH fell 3%, triggering $572M in liquidations within 24 hours.

- Historic Scale: Losses surpassed the 2016 DAO hack (10x in value).

Bybit’s Response

- User Assurance: Confirmed 1:1 reserves, processed 99.994% of withdrawal requests.

- Investigation: Collaborating with experts to trace funds, attributed to Lazarus Group.

Industry Implications

Highlights critical flaws in multi-sig security, urging enhanced protocols and audits.