{"id":46794,"date":"2025-02-21T22:25:44","date_gmt":"2025-02-21T22:25:44","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=46794"},"modified":"2025-02-21T22:25:44","modified_gmt":"2025-02-21T22:25:44","slug":"bybit-lost-70-of-ethereum-holdings-to-hacker-says-ceo","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=46794","title":{"rendered":"ByBit Lost 70% Of Ethereum Holdings To Hacker, Says CEO"},"content":{"rendered":"

Bybit CEO Ben Zhou confirmed in a Friday livestream that the $1.5 billion hack against his crypto exchange lost the firm the vast majority of its customers\u2019 ETH holdings.\u00a0<\/span><\/p>\n

\u201cI believe it was around seventy percent,\u201d Zhou told viewers, when asked how much was lost relative to the company\u2019s ETH assets under management. \u201cWe normally keep sixty to\u00a0 seventy prevent in the cold wallets, and I believe this was the amount.\u201d\u00a0<\/span><\/p>\n

What Caused The Hack?<\/span><\/h2>\n

The <\/span>breach<\/span><\/a>, first flagged by on-chain sleuth ZachXBT and other high profile accounts on Friday, saw over 400,000 Ether suspiciously leave Bybit\u2019s cold wallet address, before rapidly being swapped its staked mETH and stETH tokens for ETH.\u00a0<\/span><\/p>\n

Security experts at Cyvers told <\/span>CryptoPotato <\/span>that the hackers tricked those controlling the keys to Bybit\u2019s cold wallet into signing a malicious transaction which, from the signers\u2019 perspectives, looked honest at the time. Jack Sanford, CEO of Sherlock DeFi, had similar findings, said the transaction would have changed the rules of the multisig wallet\u2019s smart contract to bend to the hackers\u2019 wishes. <\/span>
\n<\/span>
\n<\/span>Exact details on how the signers were fooled remain unknown. \u201cThe UI itself could have been compromised, [or] Each of these honest people could have had their actual computer compromised,\u201d wrote Sanford.<\/span><\/p>\n

ZachXBT, a popular on-chain detective for large crypto hacks, submitted \u201cdefinitive proof\u201d on Friday that the hack was pulled off by the North Korean \u201cLazarus Group,\u201d according to Arkham Intelligence. Lazarus are the most notorious hackers in the world, <\/span>attacking<\/span><\/a> several major crypto exchanges in the past.\u00a0<\/span><\/p>\n

\u201cTLDR myself and Josh from CF connected the Bybit hack on-chain to the Phemex hack,\u201d <\/span>said <\/span><\/a>ZachXBT in response.<\/span><\/p>\n

Can Bybit Cover The Loss?\u00a0<\/span><\/h2>\n

Despite the seismic loss, Zhou assured followers in a tweet that all client losses remained covered by the exchange. \u201cAll client assets are 1:1 backed\u2014we can cover the loss.\u201d<\/span>
\n<\/span>
\n<\/span>Zhou added during the stream that the exchange is reaching out to its partners in search of a \u201cbridge loan\u201d to support its liquidity needs as it processes \u201cmassive withdrawals\u201d in the short term.<\/span><\/p>\n

\u201cWe actually already secured almost 80% of the Ethereum that\u2019s been stolen as a bridge loan, to help us with the liquidity crunch.\u201d<\/span><\/p>\n

So far, Zhou has resisted the idea of pausing exchange withdrawals. Binance co-founder Changpeng Zhao <\/span>suggested<\/span><\/a> that Bybit do so as a precaution \u2013 even if it spurs more fear in the market \u2013 offering his own aid if required.<\/span><\/p>\n

\u201c1.5 billion is fear enough,\u201d he said. \u201cBetter to be safe than sorry now.\u201d<\/span><\/p>\n

More lightheartedly, BitMEX co-founder Arthur Hayes called on Ethereum co-founder Vitalik Buterin to \u201c<\/span>roll back the chain<\/span><\/a>\u201d to support Bybit \u2013 an action Ethereum leaders coordinated ten years ago in response to the DAO hack.\u00a0<\/span><\/p>\n

The post ByBit Lost 70% Of Ethereum Holdings To Hacker, Says CEO<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bybit CEO Ben Zhou confirmed in a Friday livestream that the $1.5 billion hack against his crypto exchange lost the firm the vast majority of its customers\u2019 ETH holdings.\u00a0 \u201cI believe it was around seventy percent,\u201d Zhou told viewers, when asked how much was lost relative to the company\u2019s ETH assets under management. \u201cWe normally […]<\/p>\n","protected":false},"author":0,"featured_media":46795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-46794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/46794"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46794"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/46794\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/46795"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}