Bybit cold wallet hacked - 1.4Billion ETH moved!

[yohananaomi]

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.

Obviously, the hacking that occurs with enormous losses can certainly provide sentiments that can develop and will make many who will make the transfer of existing funds so that the more will worsen the situation later. So it is natural if they have to stay calm and provide soothing information so that something does not happen to them. Although there may be help from internal or from insurance that they may have done, but doubts should not occur and are something that must be avoided.

[omori]

Obviously, the hacking that occurs with enormous losses can certainly provide sentiments that can develop and will make many who will make the transfer of existing funds so that the more will worsen the situation later. So it is natural if they have to stay calm and provide soothing information so that something does not happen to them. Although there may be help from internal or from insurance that they may have done, but doubts should not occur and are something that must be avoided.

It's not that big of an amount for the sentiment to change that much, however, it's still a precident to witness and take into the account.

I hope it won't change things that much.

[rdluffy]

Do you think this is real?


Source: https://x.com/martypartymusic/status/1894199752754901366

Maybe Bybit is liquidating to recover their losses?

[Cryptsafe]

1.4B USD is not an amount that can take down Bybit, Bybit is big enough to handle this incident even if they have to borrow from many partners. I hope that they will also be able to negotiate with the hacker to get most of the money back, the hacker can receive 5-10% as a reward for finding the bug and testing

This event is causing many investors to worry but not to the point of panic like the FTX event because Bybit did not cheat users. Weak-handed investors will have more reasons to leave the market, while diamond hands will have the opportunity to buy more tokens for the uptrend!

The problem is not the $1.4 billion in ETH that has "disappeared." The problem itself lies in the credibility of an exchange with the reputation that Bybit has had for years, as well as the ability to keep exchange systems, wallets and users secure. It is true that Bybit has enough funds to offset the losses even if the hacker does not return a single ETH he stole, but I think the exchange still owes its users an explanation about the new security measures they will have to implement and how they are going to avoid problems similar to the one they are suffering now in the future.

I am curious to hear from Bybit how this happened and what measures they have put in place to further forestall any event of such happening in the future. As it stands now, bybit account holders would need some explanations from the bybit team with respect to their security measures implored since the hack to further protect the exchange and stop any future attempt to do such again. Although they would likely not say anything or much about the new security features that have been put in place at least they will have to explain to the community to calm their patience, clear their doubt and regain their trust.

[Faisal2202]

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?

Nah, this hack would not have any bad impact on the whole market but just the ETH price and to cover the empti gap in audits of Bybit they have bought the same amount of ETH again so this should be a positive sign, we should not be counting the current dump as result of this hack because it is not.

Overall the hack was pretty big as it is not a small amount, they really get their hands on something big this time. Lazarus I am talking about, they are finding more ways I wonder if any other exchanges is on their target list. We should move our funds to non custodial wallets as if we don't own the keys we don't own the funds.

[Gurujebs]

Maybe Bybit is liquidating to recover their losses?

I think many of us don't understand what liquidation is about and how it works. The exchanges don't make money from liquidation but they only make skme fractions from the process which is the fees. You see what happen to the long liquidated trades, those are shorters been settled and longer been forced closed their positions because they are out of health risk ratio.

It's like informing a bettor that there money they used for betting has been exhausted by another person on the other end and since you are not there to pay and don't have any more funds, your position has to be force close, only the fees goes to the exchanges.

[rdluffy]

I think many of us don't understand what liquidation is about and how it works. The exchanges don't make money from liquidation but they only make skme fractions from the process which is the fees. You see what happen to the long liquidated trades, those are shorters been settled and longer been forced closed their positions because they are out of health risk ratio.

Liquidation occurs when you're trading leveraged, shorting or longing the market
Exchanges have this valuable information

Exchanges can earn from the fees and from the liquidation itself, since they also own cryptos
If you look at the whole scenario that Bybit received loans quickly, the market is being liquidated and Bybit is making money, it's not hard to imagine what's going on

[JISAN]

1.4B USD is not an amount that can take down Bybit, Bybit is big enough to handle this incident even if they have to borrow from many partners. I hope that they will also be able to negotiate with the hacker to get most of the money back, the hacker can receive 5-10% as a reward for finding the bug and testing

This event is causing many investors to worry but not to the point of panic like the FTX event because Bybit did not cheat users. Weak-handed investors will have more reasons to leave the market, while diamond hands will have the opportunity to buy more tokens for the uptrend!

The problem is not the $1.4 billion in ETH that has "disappeared." The problem itself lies in the credibility of an exchange with the reputation that Bybit has had for years, as well as the ability to keep exchange systems, wallets and users secure. It is true that Bybit has enough funds to offset the losses even if the hacker does not return a single ETH he stole, but I think the exchange still owes its users an explanation about the new security measures they will have to implement and how they are going to avoid problems similar to the one they are suffering now in the future.

I am curious to hear from Bybit how this happened and what measures they have put in place to further forestall any event of such happening in the future. As it stands now, bybit account holders would need some explanations from the bybit team with respect to their security measures implored since the hack to further protect the exchange and stop any future attempt to do such again. Although they would likely not say anything or much about the new security features that have been put in place at least they will have to explain to the community to calm their patience, clear their doubt and regain their trust.

There must have been some weakness in Bybit's security due to which hackers were able to hack such a large amount. However, they have received support from various sides and many big cyber security experts are now working to further enhance Bybit's security and working hard to recover the hacked ETHs. It has already been seen that Tather has frozen several wallets of the company.  The amount of ETH or USDT already frozen in which wallets can be re-minted and returned to Bybit as the frozen ones will remain as Burn.

[Report]

-
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
-

That's a huge amount of value and I can't even imagine what that much Ethereum will be used for in the future.

The total stolen funds so far include 401,347 ETH (~$1.12B), 90,376 stETH (~$253.16M), 15,000 cmETH (~$44.13M), 8,000 mETH (~$23M).

It is also possible that Ethereum will be used to commit crimes or anything that has evil intentions.
For me, if I were a hacker, it would probably be better to return 70% of the stolen Ethereum and 30% as collateral for me personally. Rather than being a fugitive all over the world, it might be better to make a guarantee like 70:30%.

[Cryptsafe]

1.4B USD is not an amount that can take down Bybit, Bybit is big enough to handle this incident even if they have to borrow from many partners. I hope that they will also be able to negotiate with the hacker to get most of the money back, the hacker can receive 5-10% as a reward for finding the bug and testing

This event is causing many investors to worry but not to the point of panic like the FTX event because Bybit did not cheat users. Weak-handed investors will have more reasons to leave the market, while diamond hands will have the opportunity to buy more tokens for the uptrend!

The problem is not the $1.4 billion in ETH that has "disappeared." The problem itself lies in the credibility of an exchange with the reputation that Bybit has had for years, as well as the ability to keep exchange systems, wallets and users secure. It is true that Bybit has enough funds to offset the losses even if the hacker does not return a single ETH he stole, but I think the exchange still owes its users an explanation about the new security measures they will have to implement and how they are going to avoid problems similar to the one they are suffering now in the future.

I am curious to hear from Bybit how this happened and what measures they have put in place to further forestall any event of such happening in the future. As it stands now, bybit account holders would need some explanations from the bybit team with respect to their security measures implored since the hack to further protect the exchange and stop any future attempt to do such again. Although they would likely not say anything or much about the new security features that have been put in place at least they will have to explain to the community to calm their patience, clear their doubt and regain their trust.

There must have been some weakness in Bybit's security due to which hackers were able to hack such a large amount. However, they have received support from various sides and many big cyber security experts are now working to further enhance Bybit's security and working hard to recover the hacked ETHs. It has already been seen that Tather has frozen several wallets of the company.  The amount of ETH or USDT already frozen in which wallets can be re-minted and returned to Bybit as the frozen ones will remain as Burn.

There must have been some security lapses somewhere for which they could not have figured out early enough to take measures in properly putting it in place. As an organization with such responsibilities, it is ideal that they do routine checks and maintenance to regularly update and upgrade their servers with new sophisticated devices to protect their servers from being infiltrated. This is done regularly so that there would not be any room for breach looking at the magnitude and volume of funds under their custody, they would not complain of funds to do such because they sit on it there and this still makes me curious to know more but I am limited to doing such as it does not in any way worries me because I am not a team member or staff of the organization.

[koang]

There must have been some security lapses somewhere for which they could not have figured out early enough to take measures in properly putting it in place. As an organization with such responsibilities, it is ideal that they do routine checks and maintenance to regularly update and upgrade their servers with new sophisticated devices to protect their servers from being infiltrated. This is done regularly so that there would not be any room for breach looking at the magnitude and volume of funds under their custody, they would not complain of funds to do such because they sit on it there and this still makes me curious to know more but I am limited to doing such as it does not in any way worries me because I am not a team member or staff of the organization.

Bybit has released its audit report, confirming that the compromise wasn’t on Bybit’s end but with SAFE’s servers.
The preliminary reports of the hack were conducted by Sygnia and Verichains.
Here is the link to the full report:
https://docsend.com/view/s/rmdi832mpt8u93s7

[Cryptsafe]

There must have been some security lapses somewhere for which they could not have figured out early enough to take measures in properly putting it in place. As an organization with such responsibilities, it is ideal that they do routine checks and maintenance to regularly update and upgrade their servers with new sophisticated devices to protect their servers from being infiltrated. This is done regularly so that there would not be any room for breach looking at the magnitude and volume of funds under their custody, they would not complain of funds to do such because they sit on it there and this still makes me curious to know more but I am limited to doing such as it does not in any way worries me because I am not a team member or staff of the organization.

Bybit has released its audit report, confirming that the compromise wasn’t on Bybit’s end but with SAFE’s servers.
The preliminary reports of the hack were conducted by Sygnia and Verichains.
Here is the link to the full report:
https://docsend.com/view/s/rmdi832mpt8u93s7

It is nice you have shared this document but I can not be able to view it from my end here, it shows me "content unavailable and I do not have permission to view this content. For more information contact Ben Zhou"

Hearing that this issue was not the fault of the exchange, then could it be that the third party organization did not play its part in securing the servers or what happened? This whole thing is beginning to sound funny though because, on a normal, their servers are supposed to be constantly upgraded and updated as it is huge funds are right under their service to protect they should have done better than allowing this to have happened. If the breach was from them according to the report, then it's a bad record for them to have caused the breach in the crypto exchange company causing them to lose huge funds to hackers which ought to have been averted early enough.

[Gurujebs]

There must have been some weakness in Bybit's security due to which hackers were able to hack such a large amount. However, they have received support from various sides and many big cyber security experts are now working to further enhance Bybit's security and working hard to recover the hacked ETHs. It has already been seen that Tather has frozen several wallets of the company.  The amount of ETH or USDT already frozen in which wallets can be re-minted and returned to Bybit as the frozen ones will remain as Burn.

Actually, it wasn't from Bybit the weakness came from. It's from Safe wallet, a third party with largest account ownership of EVM with different smart contracts. The probem is that there is was an update and it seems Bybit was smart contract was vulnerable and Bybit wasn't aware and because they depend on this their service, the hacker was able to manipulate the contract and stole all their ethereum.

I blame Bybit though for trusting another third party to manage billions of dollars worth of Ethereum just like that, they shouldn't have depend on anyone with such amount or perhaps spread it into different wallets for safety.

[koang]

There must have been some security lapses somewhere for which they could not have figured out early enough to take measures in properly putting it in place. As an organization with such responsibilities, it is ideal that they do routine checks and maintenance to regularly update and upgrade their servers with new sophisticated devices to protect their servers from being infiltrated. This is done regularly so that there would not be any room for breach looking at the magnitude and volume of funds under their custody, they would not complain of funds to do such because they sit on it there and this still makes me curious to know more but I am limited to doing such as it does not in any way worries me because I am not a team member or staff of the organization.

Bybit has released its audit report, confirming that the compromise wasn’t on Bybit’s end but with SAFE’s servers.
The preliminary reports of the hack were conducted by Sygnia and Verichains.
Here is the link to the full report:
https://docsend.com/view/s/rmdi832mpt8u93s7

It is nice you have shared this document but I can not be able to view it from my end here, it shows me "content unavailable and I do not have permission to view this content. For more information contact Ben Zhou"

Hearing that this issue was not the fault of the exchange, then could it be that the third party organization did not play its part in securing the servers or what happened? This whole thing is beginning to sound funny though because, on a normal, their servers are supposed to be constantly upgraded and updated as it is huge funds are right under their service to protect they should have done better than allowing this to have happened. If the breach was from them according to the report, then it's a bad record for them to have caused the breach in the crypto exchange company causing them to lose huge funds to hackers which ought to have been averted early enough.

The Bybit hack exposes a chilling reality, Lazarus Group’s targeting developer machines could hit any multi-sig wallet.
And Safe has released a statement about the attack on Bybit, but its latest update raises more questions than answers. lol
You can read it here:
https://x.com/safe/status/1894768522720350673

[MUGNIA]

$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.

Insider assumptions are always the thoughts of lay people. where as we know a financial platform must have significant security in terms of financial data, what's more, this is a big exchange, so the level of validity for insiders is 75%, the rest may be true, skilled hackers, but I don't know, only Bybit knows about this problem. we as outsiders can only watch how this case continues and hope that Bybit will improve security in each of its wallets