Key Takeaways:
- Bybit hacked: Over $1.4 billion in stETH, mETH, and ERC-20 tokens stolen due to a manipulated multisig transaction.
- Exchange response: Bybit assures solvency, claims all client assets are 1:1 backed, and maintains normal operations.
- Market impact: ETH price dropped 3% as investigations continue, with researchers urging users to blacklist hacker addresses.
Bybit, a major cryptocurrency exchange, has suffered a massive security breach, with hackers stealing over $1.4 billion in liquid-staked Ethereum (stETH), Mantle Staked ETH (mETH), and other ERC-20 tokens.
Blockchain security expert ZachXBT identified the exploit, which manipulated a multisignature cold wallet transaction to redirect funds to an unknown address.
ALERT: $1B+ OUTFLOWS FROM BYBIT
— Arkham (@arkham) February 21, 2025
$1.4B in ETH and stETH outflows from Bybit
The funds have begun to move to new addresses where they are being sold. So far $200M stETH has been sold.
Address: 0x47666Fab8bd0Ac7003bce3f5C3585383F09486E2 pic.twitter.com/TfGm2UCjM5
Bybit CEO Ben Zhou confirmed the breach, explaining that the attackers altered smart contract logic to gain control.
Despite the hack, Bybit assured users that all remaining cold wallets are secure, withdrawals are functioning normally, and the exchange remains solvent.
The company stated that all client assets are backed 1:1 and that it can absorb the loss.
The breach has intensified concerns about the security of centralized crypto exchanges, contributing to a 3% drop in Ethereum’s price.
Bybit is actively seeking help from blockchain analysts and the crypto community to trace and recover the stolen assets.
Security researchers, including ZachXBT, have urged users to blacklist the hacker’s addresses.
This attack is one of the largest crypto exchange breaches in recent history, highlighting ongoing vulnerabilities in the industry.
Investigations are still underway, and Bybit has promised to provide further updates as more information emerges.
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