In a startling turn of events, cryptocurrency exchange Bybit had a significant security breach that led to the loss of 401,346 ETH from its cold wallet, which is valued at over $1.13 billion. A fraudulent transaction was used to carry out the attack, fooling wallet signers into approving a modification to the smart contract’s logic.
How the Attack Unfolded
Unknown to them, the actual signing message authorized a modification of the cold wallet’s smart contract logic, allowing the attacker to gain full control of the wallet. Once compromised, the hacker swiftly transferred the entire ETH balance to an unknown address.
Current Status and Bybit’s Response
Despite the breach, Bybit has reassured users that all other cold wallets remain secure and that withdrawals are operating as normal. The exchange is actively investigating the attack and has called upon blockchain security teams to help track the stolen funds.
The CEO has promised to provide updates as the situation develops. Meanwhile, industry experts are closely monitoring the hacker’s wallet for any movement of funds.
