Bybit, a leading cryptocurrency exchange, has suffered a massive security breach, resulting in the loss of over $1.4 billion worth of Ethereum (ETH) and staked Ethereum (stETH) tokens. The attack, which targeted the exchange’s Ethereum multisignature cold wallet, has sent shockwaves through the crypto community and triggered market fluctuations.
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How the Attack Happened
Bybit CEO Ben Zhou confirmed that the breach occurred during a scheduled transfer from the exchange’s cold wallet to its warm wallet. Hackers exploited the process by manipulating the signing message, making the transaction appear legitimate while redirecting funds to an unauthorized address.
Market Impact and Price Drop
Following the breach, Bitcoin (BTC) dipped below $97,000, and Ethereum (ETH) fell nearly 4% to trade under $2,700. This led to approximately $100 million in liquidations, affecting traders who had placed long positions.
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Bybit’s Response and Next Steps
Bybit has launched an investigation in collaboration with cybersecurity experts to track down the attackers and reinforce its security measures. The exchange assured users that the losses would be covered from its reserves, ensuring customer funds remain safe.
This incident highlights the growing risks in the cryptocurrency industry, emphasizing the need for enhanced security protocols to safeguard digital assets.
Source Links: Decrypt, Business Insider
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