Bybit cold wallet hacked - 1.4Billion ETH moved!

[TryNinja]

Have they actually posted any proof of reserves? It's a big claim to say they had over $1.4 billions just sitting there in their own reserves and they can cover all the losses from the hack from their own pocket.
According to CMC, their 24h volume is around $1.5 billion, calculated at 0.1% fee, the stolen amount was worth almost 3 years of their revenue.

Not sure how that's calculated, but I've heard many times that Bybit profits more than $1.2b per year, so the amount lost is equal to 1 year of business. Hurts a bit, but they have the option of letting the exchange die or survive for now so they can fill the hole in 1 year and then keep profting tens of billions for the near future.

Even Coinbase profited $2.6 billion last year.

Some exchanges have blocked funds believed to be from the Bybit hack

https://x.com/Bybit_Official/status/1893687749229563958

hint: Bitget froze 84 USDT 

Seems like Lazarus will have to get creative to launder and withdraw the funds. Saw a tweet earlier today that they connected the group with an address which launched and profit from a memecoin. Might see some memecoins from them to try hiding the money in the crow. Crazy stuff.

[TomPluz]

What will be the effect on crypto market after this confirmed news?

We have already seen the effects lately and it is not as gargantuan as some might have supposed. Though the hack is really so big for an exchange, I think the market is not reacting wildly to the news and it is now starting to move on. What is concerning here is that the hack involved the cold wallet of Bybit...making me think if there is still safe in here for exchanges as many are falling victim to the Lazarus hackers based in North Korea. As a result, I think that big exchanges should band together to create solid, strong and pro-active security technology that can protect their business from any hacker especially those coming from abroad, otherwise this will not be the last and we would even see bigger hacks in years to come.

[bayu7adi]

As a result, I think that big exchanges should band together to create solid, strong and pro-active security technology that can protect their business from any hacker especially those coming from abroad, otherwise this will not be the last and we would even see bigger hacks in years to come.

Eummm... it's really like a never-ending terror until the future... if only there was a way to prevent and control it simultaneously, it's quite risky too, considering when many exchanges use the same security system (in this case because of their cooperation) and the same way of handling it... the most critical thing that happens is a bigger hack because the unification makes the condition worse...

Yeah, this incident is really shocking and I hope bybit really finds a solution for this big loss... many people are waiting for the amount of reserve funds that the platform has... because it's really interesting to measure bybit's ability to solve this problem.

[milewilda]

What will be the effect on crypto market after this confirmed news?

We have already seen the effects lately and it is not as gargantuan as some might have supposed. Though the hack is really so big for an exchange, I think the market is not reacting wildly to the news and it is now starting to move on. What is concerning here is that the hack involved the cold wallet of Bybit...making me think if there is still safe in here for exchanges as many are falling victim to the Lazarus hackers based in North Korea. As a result, I think that big exchanges should band together to create solid, strong and pro-active security technology that can protect their business from any hacker especially those coming from abroad, otherwise this will not be the last and we would even see bigger hacks in years to come.

Or we can say that the community is already that been not minding up that much? There were sell off on ETH's but it didnt drop so hard on which unlike before into those previous years on which whenever there's some exchange hacks on which it will really be making up the market dump but thats not the case that we are seeing now and its really that different. We've seen on how the market reacts with these kind of sentiments now. Just like on what i have said earlier that usually these kind of exchange hacks do really happens whenever that bull run approaches. We've seen these kind of news or fundamentals on which it could possibly driven down the market price but it seems that this one isnt really that making some huge impact in regarding into value.

[nomenclatur]

Crypto exchange Bybit announced it suffered a security breach in one of its ETH cold wallets.

The hack saw the attacker stealing $1.4 billion worth of ETH.

Bybit's CEO claims the exchange is solvent even if the stolen funds aren't recovered.
Crypto exchange Bybit hacked for $1.4 billion worth of ETH

What will be the effect on crypto market after this confirmed news?

First impressions there's a slight downtrend on the prices of cryptos but nothing significant or this is yet to reach the potential weak hands?

Until now, the Bybit team is still looking for the perpetrators and holding a bounty to find them. The reward is quite substantial, around 150 million US dollars. If someone succeeds in recovering their money, the reward will be quite high for those who can find the stolen Ethereum. Bybit has grown rapidly, but the losses have been significant.

[Mia Chloe]

~snip

Some exchanges have blocked funds believed to be from the Bybit hack
hint: Bitget froze 84 USDT 

In my opinion I think freezing 84 USDT would not be much of a big deal. Besides given the amount that the hackers actually stole from bybit , that fraction of USDT is way too small for them to pull out in attempt to split the funds, kill trace and probably convert it to fiat.

If those hackers are really good they probably would have split those coins into bits and then proceed to move them via decentralized exchanges swapping to something like Monero allowing bit sit for a while and the to probably bitcoin.

[bitterguy28]

If those hackers are really good they probably would have split those coins into bits and then proceed to move them via decentralized exchanges swapping to something like Monero allowing bit sit for a while and the to probably bitcoin.

it has been said that bybit has been working with elliptic trying to trace these hackers they know that the stolen tokens have been converted to native eth and now are distributed in different wallets and exchanges now the next move is for the hackers to empty these wallets without being traced they might use mixers for this or decentralized exchanges bybit must be waiting for further activity

[examplens]

Well, Bybit reacted fast and is back to almost 100% 1:1 on client assets. (Ben Zhou they fully closed the ETH gap.)
Since being hacked, Bybit has received ~446,870 $ETH($1.23B) through loans, whale deposits, and ETH purchases


source: https://x.com/lookonchain/status/1893852261027140041

[Fivestar4everMVP]

It's worth commending the effort of the bybit CEO and the entire staff of the exchange for how the treated the issue of the hack, the money involved isn't a small amount of money but still, the management of the exchange treated the issue In a manner that the hack didn't have any negative impact on the prices of cryptocurrencies.

This is something every crypto exchange in the industry currently should emulate, to ensure that incidents like this never leads to what we saw during ftx collapse.

[Freemind]

In my opinion I think freezing 84 USDT would not be much of a big deal. Besides given the amount that the hackers actually stole from bybit , that fraction of USDT is way too small for them to pull out in attempt to split the funds, kill trace and probably convert it to fiat.

If those hackers are really good they probably would have split those coins into bits and then proceed to move them via decentralized exchanges swapping to something like Monero allowing bit sit for a while and the to probably bitcoin.

Freezing 84 USDT has nothing to do with the amount since it is very small. The fact of freezing that amount is more a detail of camaraderie and unity between exchanges and companies in the face of this type of hack than what 84 USDT really means. And I think that "unity" means a lot for exchanges, especially for the "weaker" ones, which logically are the ones with the least funds.

Yes, that hacker group is really good, although I personally don't consider them the best of all. Lazarus has a great track record in the underground scene, but despite the group's ability, it must be taken into account that Bybit acted very quickly, and that has possibly caused Lazarus to lack the ability to react.

[Gurujebs]

Until now, the Bybit team is still looking for the perpetrators and holding a bounty to find them. The reward is quite substantial, around 150 million US dollars. If someone succeeds in recovering their money, the reward will be quite high for those who can find the stolen Ethereum. Bybit has grown rapidly, but the losses have been significant.

They will take years before they recover from this loss. They have received alot of Ethereum from different ventures and partners and also some exchanges but the probem here is this loans are having interest rate. How much do we think this loan will be worth on an average, it's going to be taking years before this guys recover.

As for the hacker, this is one of the most see finish hacker I have seen, they are laundering money stolen every day on t h e internet. Just one mistake, and everything regarding this hack will become traceable and whoever is behind this hack will be exposed.

[Baofeng]

What will be the effect on crypto market after this confirmed news?

We have already seen the effects lately and it is not as gargantuan as some might have supposed. Though the hack is really so big for an exchange, I think the market is not reacting wildly to the news and it is now starting to move on. What is concerning here is that the hack involved the cold wallet of Bybit...making me think if there is still safe in here for exchanges as many are falling victim to the Lazarus hackers based in North Korea. As a result, I think that big exchanges should band together to create solid, strong and pro-active security technology that can protect their business from any hacker especially those coming from abroad, otherwise this will not be the last and we would even see bigger hacks in years to come.

Yeah, the lowest low that I've seen in $93k and then we went back to $94k-$95k. So it's not that big even if the hacked is really that huge and it could have negative effect but the market remains resilient again.

Lazarus is really hitting the jackpot this early and we can only imagine what will they used for this billion?

Another weapons for them? hopefully not.

[Mate2237]

$1.4B is lost and the exchange is still solvent.    they're not even planning to recover lol

Of course, they will claim that they are still solvent. Some wrong statements could cause panic and mass withdrawal from their exchange, which would certainly affect solvency and a very possible bankruptcy.

Somehow I wouldn't be surprised if it turns out to be an insider theft.

The thing is that Bybit have some safu balance to keep things at normal state and they will try everything possible to present themselves as self sufficient in other not to create any form of panic within their customers, amd also for now everything seems to be very OK and normenal with the exchange and their is no other official statement that can differ the already established customers confidence in they customers.

No panic withdrawal os notice yet and I still use Bybit for my p2p trading less than 24 hour's ago and everything went fine with the transactions.

I don't know if electronicash is following the news because the last time when I checked, the CEO said they are planning to recover the lost funds and the panic withdrawal has stopped.

You can read what he said.

🚨 Bybit CEO speaks out after major hack

✔️ Withdrawals are functional, but processing is slower due to 4,000+ pending transactions.

✔️ All Bybit services continue without disruption.

✔️ Looking into interim credit options to recover lost funds.

✔️ Withdrawal panic is over – 70% of requests completed.

🤨 Just one hour after the hack, $560M USDT landed on Bybit.

⚠️ Market impact: $100M in LONG positions liquidated in an hour

[Stuart]

Crypto exchange Bybit announced it suffered a security breach in one of its ETH cold wallets.

The hack saw the attacker stealing $1.4 billion worth of ETH.

Bybit's CEO claims the exchange is solvent even if the stolen funds aren't recovered.
Crypto exchange Bybit hacked for $1.4 billion worth of ETH

What will be the effect on crypto market after this confirmed news?

First impressions there's a slight downtrend on the prices of cryptos but nothing significant or this is yet to reach the potential weak hands?

As part of a business strategy to keep its users feel their funds are safe in good hands to me will be the reason for such statement. If there comes any form of panicking statement, it will lead to mass withdrawal from the exchange and deterioration of the exchange from its current level to a struggling one.

Though, 1.4billion is a big one to hit as a loss for a business.

[LogitechMouse]

---
What will be the effect on crypto market after this confirmed news?

First impressions there's a slight downtrend on the prices of cryptos but nothing significant or this is yet to reach the potential weak hands?

We just saw a dump minutes after the hacking incident happened, and knowing it's $1.4B that's lost, a dump like that is pretty much expected already.
Weak hands might've sold some of their assets, but if you're an intelligent investor, you know that it's an opportunity to at least buy more Bitcoin. Losing $1.4B on a single day is quite unfortunate though. I mean that's almost a year of revenue for them already (more or less).

$1.4B is lost and the exchange is still solvent.    they're not even planning to recover lol

Knowing that it's Bybit which is one of the largest CEXes right now, saying that they aren't will create much more fear on the market. Just the hack alone pushed the price of Bitcoin from around $99,000 to around $95,000. What more if they said that they're insolvent. As for the recovery, I don't think that they can recover it TBH, or at least they have the power to recover it. The best thing that they can do is to put the lost money back 1:1, and luckily, they did it immediately.