Bybit's founder, Ben Zhou, confirmed a hack on the exchange on February 21st, resulting in a $1.5 billion theft of Ethereum.
Bybit Cold Wallet Vulnerability
The breach occurred as Bybit was transferring funds from its cold wallet to a warm wallet. Ben Zhou explained that the attack was facilitated by a manipulation of the transaction signing interface, which allowed hackers to alter the smart contract logic of the cold wallet.
Bybit's Response and Crisis Management
Bybit's founder and representatives confirmed that only the Ethereum cold wallet was affected, with other assets remaining secure. Bybit assured users that their funds are safe and operations continue as usual. Zhou noted that all client assets are backed 1:1.
Hackers' Trail and Lazarus
Analysts have linked the attack to the North Korean group Lazarus, known for their assaults on crypto exchanges. Researchers from Arkham and Elliptic traced the movement of the stolen funds across different wallets.
The attack on Bybit is considered one of the largest in crypto history, sparking widespread reaction within the community. The exchange faces the challenge of restoring user trust and enhancing its security measures.
