Bybit Hack: About $1.5 Billion In ETH Stolen By Hackers

Bittime - Bybit, one of the leading cryptocurrency exchange platforms, recently reported a costly hack attack of $1.5 billion in Ethereum (ETH) stolen from its cold wallets. In an official announcement published by the platform, Bybit confirmed that 401,000 ETH had been lost in a hack carried out by a hacker group, which was later linked to the Lazarus Group, which is known as a hacking group from North Korea.

Bybit's Response to Hacking

Bybit immediately reported the hack to authorities and launched an aggressive effort to track and block the stolen ETH. The platform worked with on-chain analytics providers to identify and segregate the addresses involved in the hack, so that the hackers could not sell the stolen ETH on the market. In a tweet on X (Twitter), Bybit stated:

“We have reported this case to the appropriate authorities and will provide an update as soon as we have more information. We quickly and extensively worked with on-chain analytics providers to identify and isolate the addresses involved. These steps will mitigate and limit the ability of bad actors to dump ETH on the market through legitimate channels.”

Bybit CEO Responds Directly to Hacking

Ben Zhou, CEO of Bybit, immediately responded to the first report of the hack in less than 30 minutes. He confirmed that 401,000 ETH had been successfully stolen from Bybit's cold wallet, but assured that the platform continues to operate normally. 

In a live broadcast session on X and YouTube, Zhou explained that even though the hack occurred, Bybit still processed withdrawals according to normal procedures. “Retail recalls are prioritized, and we process thousands of requests every hour,” Zhou said.

Zhou also explained that the platform continues to operate without interruption, with Bybit's funds reserves fully guaranteed (1:1). However, Zhou revealed that the point of failure came from the Gnosis Safe multisig process used by Bybit, which was the target of exploitation by hackers. However, Bybit immediately revoked compromised access once the hack was detected.

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Efforts to Prevent Sales of Stolen ETH

Bybit not only reported this hack, but immediately took action to fight the hackers. Zhou emphasized that selling the stolen ETH would be very difficult, as Bybit had flagged and blacklisted the wallets involved. In this effort, Bybit is also working with industry partners such as Binance and Bitget to block stolen ETH from being moved through their platforms.

ZachXBT, a prominent on-chain analyst, was the first to attribute the hack to Lazarus Group. He confirmed that the attack pattern used in the Bybit hack was very similar to previous hacks carried out against Phemex and Atomic Wallet.

Bybit Continuously Provides Updates

While the hack is significant, Zhou assured that it did not impact Bybit's financial health. "This attack is significant, but does not affect Bybit's financial health," he said. Bybit also ensures that all other cold wallets remain safe and that no user funds are affected. The platform continues to operate as usual without any disruption.

Zhou also used this opportunity to address the hackers directly, stating that moving the stolen funds would be very difficult, and repeatedly calling for them to stop and negotiate.

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Conclusion

The Bybit hack that resulted in the loss of approximately $1.5 billion in ETH highlights how important security and transparency are in the cryptocurrency ecosystem. While this attack was a major challenge, Bybit's quick response and transparency, along with industry collaboration, helped maintain user trust. 

With steps already in place to limit damage and block the sale of stolen ETH, Bybit is committed to protecting user funds and continuing to operate without interruption.

FAQ

How does Bybit handle this hack?

Bybit immediately reported the hack to authorities and worked with on-chain analytics providers to track and block the hacker's address, as well as ensure that the stolen ETH could not be sold on the market.

Are user funds on Bybit safe after this hack?

Bybit CEO, Ben Zhou, ensures that all user funds remain safe and that no funds are frozen. All other Bybit cold wallets remain safe.

What is Bybit doing to prevent the sale of stolen ETH?

Bybit is working with industry partners such as Binance and Bitget to block wallets involved in hacks, making it more difficult for hackers to sell stolen ETH.

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Reference

MSN, Bybit reports $1.5B hack to the authorities, working to block stolen ETH sales, accessed 22 February 2025.

Author: MF