The recent Bybit exchange hack, one of the largest in the cryptocurrency industry, resulted in significant price drops for major digital assets and millions of liquidated positions.
Bybit Hack and Its Confirmation
Details emerged today about the hack of Bybit's hot wallets. The company's CEO, Ben Zhou, confirmed the incident, which resulted in the withdrawal of approximately $1.4 billion in Ether (ETH).
Technical Details of the Attack
The attacker deployed a malicious contract to Bybit signers' devices two days before the hack. When attempting to initiate legitimate transactions, the malware sends malicious payloads to the hardware wallets, which are signed due to blind signing on these wallets.
Impact on the Cryptocurrency Market
The attack had a dramatic effect on the cryptocurrency market. BTC's price fell by more than $4,000 from today's peak of $100,000. Liquidations exceeded $600 million, with the largest wreck occurring on HTC, worth $45.8 million.
The scale of the Bybit hack and its aftermath highlights the importance of security in the cryptocurrency industry and may impact public trust in centralized exchanges.
