Bybit, one of the largest cryptocurrency exchanges, appears to have suffered a major security breach, with on-chain analysts reporting over $1.4 billion in unauthorized Ethereum outflows.
Suspected Hack: $1.4 Billion in ETH Outflows
The exchangeconfirmed that an unauthorized transfer had occurred from one of its cold wallets, reportedly due to a masked UI spoofing attack that altered the signing interface of a multi-signature wallet.
Bybit CEO Ben Zhou acknowledged the incident, stating that while one ETH cold wallet was compromised, all other wallets and user funds remain secure.
Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing…
— Bybit (@Bybit_Official) February 21, 2025
Ongoing Investigation & Market Reaction
Bybit’s security team, alongside blockchain forensic experts, is investigating the breach and seeking assistance in tracing and recovering stolen assets. Reports suggest that the stolen ETH is being swapped for mETH and stETH on decentralized exchanges (DEXs).
The incident raises fresh concerns about exchange security and multi-signature wallet vulnerabilities, particularly as centralized platforms remain high-value targets for sophisticated cyberattacks.
Bybit has assured users that operations continue without disruption and promised further transparency as the investigation unfolds.
