Crypto Catastrophe: Bybit’s $1.4 Billion Heist Leaves Everyone Shook! 😱💰

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In a tale that could make even the most hardened cynic weep, Bybit has been struck by a calamity of epic proportions, losing a staggering $1.4 billion in digital assets. The very foundations of the crypto ecosystem tremble as the news spreads like wildfire. 🔥

From the shadows of this digital heist, Elliptic’s Chief Scientist emerges, declaring this theft “the largest crypto theft of all time, by some margin.” Oh, how the mighty have fallen! 💔

Bybit Suffers Largest Hack In History

It was the keen eye of on-chain investigator ZachXBT that first caught the whiff of this nefarious act, flagging suspicious outflows that would make even the most seasoned thief blush. The exchange, in a twist of fate, reported an unauthorized Ethereum (ETH) transfer from its cold wallets, all thanks to some crafty masked UI spoofing. But fear not, dear customers, for Bybit assures you that all other wallets remain as secure as a vault in a spy movie! 🕵️‍♂️

In a dramatic twist, Bybit CEO Ben Zhou took to X to confirm the hack, revealing that the exchange’s multisig cold wallet had been transferred to their warm wallet. A classic case of “whoops, my wallet just walked away!”

According to Zhou, the hackers had the audacity to mask this specific transaction, fooling all signers into believing they were safe. “Look over there! A shiny URL from the SAFE platform!” they must have thought. But alas, the signing message was a cunning ruse, allowing the hackers to seize control of the ETH cold wallet and whisk it away to an unidentified address. Zhou, ever the optimist, assured customers that other wallets were untouched and that withdrawals were as normal as a Monday morning coffee. ☕

“Bybit ETH multisig cold wallet just transferred 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 the smart contract logic of our ETH cold wallet. This resulted in Hacker taking control of the specific ETH cold wallet. We signed and transferred all ETH in the cold wallet to this unidentified address. Please rest assured that all other cold wallets are secure. All withdrawals are NORMAL. I will keep you guys posted as more develops. If any team can help us to track the stolen funds, it would be appreciated.”

Crypto Ecosystem Reacts

Tom Robinson, the Chief Scientist at Elliptic, weighed in with a flourish, proclaiming this hack the biggest crypto theft of all time, leaving the previous record of $611 million stolen from the Poly Network in 2021 looking like pocket change. Talk about a new benchmark for thievery! 💸

“This makes it the largest crypto theft of all time, by some margin. The next largest crypto theft would be the $611 million stolen from Poly Network in 2021. It may even be the largest single theft of all time. We’ve labeled the thief’s addresses in our software to help prevent these funds from being cashed out through other exchanges.”

In a show of camaraderie, Binance founder Changpeng Zhao offered Bybit a lifeline, suggesting they pause withdrawals. Because nothing says “trust us” like a temporary withdrawal freeze! 😅

“Not an easy situation to deal with. Suggest stopping withdrawals for a bit as a standard security precaution. Will provide any assistance if needed.”

Meanwhile, Arkham Intelligence, ever the opportunists, announced a bounty to track down the culprits behind this audacious heist. Because who doesn’t love a good treasure hunt? 🕵️‍♀️

“We’ve created and funded a bounty to help identify the person or organization behind today’s [over] $1 billion Bybit hack. Submissions to this bounty will be shared with the Bybit team to support their investigation. Reward: 50,000 ARKM.”

As the dust settles, ZachXBT reveals that the infamous Lazarus Group is behind this grand theft. Meanwhile, Tron founder Justin Sun assures us they are keeping a close watch on the situation, ready to lend a hand in tracking down the elusive funds. 🧐

Bybit Remains Solvent

In a twist that would make a soap opera writer proud, Bybit CEO Zhou reassures customers that the exchange remains solvent, even if the stolen $1.4 billion is not recovered. “Fear not, for all client funds are covered 1 to 1!” he declares, as if that’s supposed to make us feel better. Data from CoinMarketCap reveals that the exchange had reserve assets worth $16.2 billion before the hack, meaning the stolen funds account for a mere 8.60% of their reserves. Phew! What a relief! 🙄

“Bybit is Solvent, even if this hack loss is not recovered, all of the client assets are 1 to 1 backed. We can cover the loss.”

Flashbots strategy head Hasu chimed in, assuring everyone that despite the scale of the hack, Bybit would not meet its demise. “If you want my serious take, Bybit has way more than 1.4 billion in revenue per year. They are good for the money and will make all customers whole.” Because who doesn’t love a happy ending? 🎉

“If you want my serious take, Bybit has way more than 1.4 billion in revenue per year. They are good for the money and will make all customers whole. It doesn’t matter for ETH because Bybit will honor customers’s ETH liabilities and buy back the assets on the open market.”

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2025-02-22 10:15