ByBit, a leading crypto exchange, has confirmed the loss of $1.4 billion worth of Ethereum due to a hack of one of its cold wallets.
ByBit’s Statement on the Hack
During a live stream on the X platform, ByBit’s head of derivatives and institutions, Shunyet Jan, confirmed that all of the exchange’s users are affected by the incident, stating: “To be honest, right now, everyone is affected.”
Impact on Users
Although only ByBit’s ETH cold wallet was compromised, withdrawals have been paused, preventing users from withdrawing other assets. Ben Zhou noted that the stolen percentage of Ethereum constitutes 70% of the exchange’s total ETH holdings, directly affecting the majority of ETH holders.
Security Measures and ByBit’s Response
ByBit maintains that other assets, including hot and cold wallets, are safe. Jan stated that retail withdrawals are proceeding normally and the queue is shortening. He also mentioned that some of the exchange’s partners are helping cover withdrawals. Furthermore, ByBit will not be purchasing ETH from the open market to cover users’ losses.
Despite the significant loss, ByBit assures users about the security of remaining assets and is taking measures to mitigate the damage.