Bybit Hack: Over $1.4 Billion in ETH and stETH Stolen in Major Security Breach

In a significant security incident, crypto exchange Bybit has been hacked for approximately $1.4 billion in Ether (ETH) and staked Ether (stETH). Blockchain analysts, including ZachXBT in his Telegram group, first flagged the unusual outflows, with sources confirming the breach as a serious security event.

Details of the Incident

According to Bybit CEO Ben Zhou, the hack involved unauthorized access to a specific ETH cold wallet. Zhou explained on X (formerly Twitter) that the attacker gained control of one of the multisignature cold wallets and transferred all ETH contained within. He reassured users that “all other cold wallets are secure” and that regular withdrawal processes remain unaffected.

The compromised wallet was part of Bybit’s “Triple Layer Asset Protection” system—designed to safeguard user funds through advanced multi-signature, Trusted Execution Environment (TEE), and Threshold Signature Schemes. Despite these security measures, the hacker managed to bypass the protections and drain 401,346 ETH from the targeted wallet.

 Impact on Bybit’s Reserves

Prior to the incident, Bybit’s proof of reserves indicated a healthy surplus, with 543,453 ETH held against 537,152 ETH owed to users, creating an excess of 6,301 ETH. However, the loss of 401,346 ETH far exceeds this surplus, intensifying concerns about the scale of the breach.

Community and Analyst Reactions

The hack has sent shockwaves through the crypto community. Analysts and security experts are closely monitoring the situation as details continue to emerge. Despite the severity of the attack, Bybit has yet to provide additional updates or a detailed investigation report.

Protos reached out to Bybit for comment on the breach, but as of now, no further response has been received.

What This Means for Crypto Security

The Bybit hack is a stark reminder that even exchanges with robust security protocols can fall victim to sophisticated attacks. The incident underscores the need for continuous enhancements in cybersecurity, particularly for systems relying on cold wallet storage and advanced cryptographic methods.