On February 21, 2025, Bybit, a prominent cryptocurrency exchange, experienced a significant security breach resulting in the theft of approximately $1.4 billion in crypto assets, including over 401,000 Ether and various staked Ether tokens.
The breach occurred when an attacker gained access to Bybit's Ether cold wallet during a routine transfer to a warm wallet. The hacker manipulated the transaction interface, enabling the unauthorized transfer of funds to unidentified addresses.
In response, Bybit's co-founder and CEO, Ben Zhou, assured customers that the exchange remains solvent and that all user assets are safe and backed 1:1. Despite these assurances, the incident underscores ongoing security challenges within the cryptocurrency industry, which saw $2.2 billion stolen in 2024 alone.
The hack has prompted discussions about the vulnerabilities of centralized crypto exchanges and the need for enhanced security measures to protect user funds.