Bybit, a cryptocurrency exchange, recently faced a massive security breach, resulting in the loss of over $1.4 billion in liquid-staked Ether (ETH) and MegaETH (mETH) ¹ ². The breach occurred when a malicious transaction was made from Bybit's multisignature wallet to a warm wallet, containing altered smart contract logic that allowed hackers to drain funds.
Bybit's co-founder and CEO, Ben Zhou, acknowledged the hack and assured users that the exchange is investigating the breach. Zhou explained that the transaction appeared legitimate but contained malicious code, which altered the smart contract logic ².
In response to the breach, Bybit launched a $140 million Recovery Bounty Program, offering incentives to experts who help track and retrieve stolen assets ¹. The program aims to retrieve the stolen funds and enhance the security infrastructure of the exchange.
The breach has sparked a wave of industry-wide support, with major players in centralized and decentralized finance rallying to contain the attack and prevent further fund movement ¹. Bybit has also received support from its institutional clients, who maintained their trading positions, preventing widespread market panic.
Despite the breach, Bybit remains committed to transparency and has promised continuous updates as it enhances its security infrastructure and reinforces industry-wide defense mechanisms ¹.
