Bybit Exchange Hacked: Over $1.4 Billion in ETH-Related Tokens Stolen

Massive Security Breach at Bybit

Cryptocurrency exchange Bybit has fallen victim to a major security breach, with hackers stealing over $1.4 billion worth of staked Ether (stETH), Mantle Staked ETH (mETH), and other ERC-20 tokens.

The hack, first spotted by on-chain security analyst ZachXBT, occurred on Feb. 21, when attackers took control of one of Bybit’s Ethereum cold wallets.

Bybit CEO Ben Zhou confirmed the breach, explaining that:

Bybit ETH multisig cold wallet just made a transfer to our warm wallet about 1 hr ago. It appears that this specific transaction was musked, all the signers saw the musked UI which showed the correct address and the URL was from @safe . However the signing message was to change…

— Ben Zhou (@benbybit) February 21, 2025

• Hackers manipulated a multisignature wallet transaction by injecting malicious source code, allowing them to siphon funds.
• The attack was designed to appear legitimate, making it harder to detect.

Bybit Assures Customers of Solvency

Despite the massive financial loss, Zhou reassured users that:

• All client assets remain fully backed 1:1.
• Withdrawals are still functioning normally.
• Other cold wallets remain secure.

In a statement on X (formerly Twitter), Bybit emphasized that exchange operations continue as usual, and they are actively working to track the stolen funds.

Ben Zhou's Livestream on the Latest ETH Wallet Incident LIVE now. https://t.co/mBwD9ubGIl

— Bybit (@Bybit_Official) February 21, 2025

Crypto Market Reacts

The hack sent shockwaves through the crypto industry, causing Ether (ETH) prices to drop by over 3%.

This incident adds to a growing trend of crypto hacks in early 2025:

• Feb. 14: Starknet-based ZkLend lost $9.5 million in a separate exploit.
• Feb. 5: Hackers compromised the social media accounts of Jupiter (Solana-based exchange) and former Malaysian Prime Minister Mahathir Mohamad, using them to promote fake memecoins.
• Recent Weeks: Eliza Labs founder Shaw Walters also fell victim to a social media hack, despite having two-factor authentication enabled.

With crypto exchange security threats on the rise, Bybit’s swift response will be closely watched as the industry assesses its security vulnerabilities and future preventative measures.