Bybit CEO Ben Zhou Addresses Security Concerns After Record-Breaking Crypto Exchange Hack

Over $1.4 Billion Stolen in Largest Crypto Exchange Hack in History

Security veterans and concerned crypto community members rallied behind Bybit on Friday, Feb. 21, after the exchange lost over $1.4 billion to hackers. The incident occurred while Bybit was attempting a routine transfer, with hackers tricking Bybit’s signers into authorizing a malicious transaction from the platform’s Ethereum cold wallet.

Details of the Breach

Initial reports suggest that hackers withdrew:

  • 401,347 ETH worth $1.12 billion
  • 90,376 stETH worth $253.16 million
  • 15,000 cmETH worth $44.13 million
  • 8,000 mETH worth $23 million

These funds were later moved to another wallet.

Investigation and Community Support

Bybit employs a multi-sig structure designed by Safe to manage its ERC-20 token reserves. Blockchain developer OxCygaar theorized that bad actors attacked each signer and used malware to alter the multi-sig UI, potentially compromising the signers’ computers or crypto wallets.

requires identifying each signer and then getting them to unknowingly install malware so their multisig ui is compromised

The crypto community has rallied behind Bybit, with ARKM tokens being offered for any information leading to the hacker’s identification. Safe has also announced ongoing maintenance to strengthen safety.

Bridge Loan and Collaboration with Industry Players

Bybit is working with other industry players like Binance, OKX, and KuCoin and law enforcement to reach a resolution. The exchange is also negotiating a bridge loan with partners to restore Ethereum withdrawals, with collateral being offered from its treasury in Bitcoin (BTC) and stablecoins.

We have filed a police report

Bybit’s leadership has reassured users that the exchange can fully cover the loss, with over $20 billion in assets under management.

Reassurance to the Crypto Community

Bybit’s leadership urged the crypto community to remain patient amid platform congestion, reassuring users that other ERC-20 withdrawals and normal operations continue as usual.

Bybit is Solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss

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