Bybit cold wallet hacked - 1.4Billion ETH moved!

[yohananaomi]

$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

It seems that what you said is a reality that should be a guideline for a fairly large financial platform.
The role of insiders is very significant and cannot be denied, and it is natural that the % should be higher even though the rest could be hackers playing.
But wisely and, of course, so that investors who have been loyal there do not panic. Bybit claims to be able to overcome it all and that is something that deserves to be appreciated, but this problem will always be an unforgettable memory.

[Bobcrypto]

(...) 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.

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.

I don't think they had posted any proof of reserve but there are indication that users funds are not affected, as explained by team.
I am beginning to wonder if this proof of reserve is actually realistic because i read that there are some Etheruem donated by Binance and Bitget exchanges, precisely to assist in reducing the effects of the hack on the market and Bybit exchange.
The Proof of reserve from exchange may continue to generate debates on the crypto community because many crypto users thinks that some of the CEX exchange has not shown strong commitments about their proof of reserve. There are still some doubt about these proof of reserve from some of these exchanges out there.

[Freemind]

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.

I don't think Bibyt's statements are very technical or deep. At most they will simply say that they have solved the problem and that something like this will not happen again. What they won't say is that they are testing their systems 100%, something that is theoretically done before launching an exchange, or is planned every X months to evaluate security levels. Although users have their funds and from now on will act as if nothing has happened, the problem lies in how long it will take until something similar happens again, on Bybit or any other exchange.

I don't think they had posted any proof of reserve but there are indication that users funds are not affected, as explained by team.
I am beginning to wonder if this proof of reserve is actually realistic because i read that there are some Etheruem donated by Binance and Bitget exchanges, precisely to assist in reducing the effects of the hack on the market and Bybit exchange.
The Proof of reserve from exchange may continue to generate debates on the crypto community because many crypto users thinks that some of the CEX exchange has not shown strong commitments about their proof of reserve. There are still some doubt about these proof of reserve from some of these exchanges out there.

Proof of reserves are a very good idea, but the truth is that, in my opinion, exchanges do not execute them as they should. I have never trusted proofs of reserve because they are not transparent.

[Findingnemo]

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.

I don't think Bibyt's statements are very technical or deep. At most they will simply say that they have solved the problem and that something like this will not happen again. What they won't say is that they are testing their systems 100%, something that is theoretically done before launching an exchange, or is planned every X months to evaluate security levels. Although users have their funds and from now on will act as if nothing has happened, the problem lies in how long it will take until something similar happens again, on Bybit or any other exchange.

They can't express anything in detail because it affect their business since any data related to losing funds will simply add fuel to the fire. And for now they remained solid by covering the loss from other sources but definitely the one who hacked is not going to stop attempting to make it happen so it's really important for the bybit to survey their security mechanism of their cold wallets to avoid them end up doing the same.

[albon]

A significant portion of the stolen funds lie dormant in various addresses, often deliberately used by north korea sanctioned hackers. The Trader traitor cycle is moving quickly and has converted some of the stolen assets into bitcoin and other virtual assets that are scattered across thousands of addresses across multiple blockchains. I learned from a news report that the bybit community has already been able to recover about $40M. By now, it should be clear to everyone how dangerous it is to store funds in an exchange account, so as a small investor I always take funds as important.

[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

It seems that what you said is a reality that should be a guideline for a fairly large financial platform.
The role of insiders is very significant and cannot be denied, and it is natural that the % should be higher even though the rest could be hackers playing.
But wisely and, of course, so that investors who have been loyal there do not panic. Bybit claims to be able to overcome it all and that is something that deserves to be appreciated, but this problem will always be an unforgettable memory.

very grateful if bybit can overcome all this well, and the current bad market conditions are not due to bybit being hacked, it is clear from the economic conditions which are indeed not good and bad news about the relationship between sec and crypto maybe

[Mia Chloe]

A significant portion of the stolen funds lie dormant in various addresses, often deliberately used by north korea sanctioned hackers. The Trader traitor cycle is moving quickly and has converted some of the stolen assets into bitcoin and other virtual assets that are scattered across thousands of addresses across multiple blockchains.

Do you know the reason why it seems burning up those cash or distributing them seems retarded? It's actually because of the volume else the funds would have long vanished in thin air. It's easier to monitor the funds and it's movement as a large chunk.

Splitting into smaller units makes it relatively more difficult for those monitoring the funds or coins to keep track of it. It's a matter of time though but I doubt they will recover it.

[Baofeng]

A significant portion of the stolen funds lie dormant in various addresses, often deliberately used by north korea sanctioned hackers. The Trader traitor cycle is moving quickly and has converted some of the stolen assets into bitcoin and other virtual assets that are scattered across thousands of addresses across multiple blockchains. I learned from a news report that the bybit community has already been able to recover about $40M. By now, it should be clear to everyone how dangerous it is to store funds in an exchange account, so as a small investor I always take funds as important.

Yes, we have seen many crypto exchanges have been hacked already in the past, and we keep on telling crypto enthusiast not to store a lot of their cryptos in exchange because of this kind of hacks.

As for the funds, its' going to be a cat and mouse game as Bybit and the rest of the investigators are going to trace it and then on the other hand, Lazarus are going to launder it and hide their tracks.

[yohananaomi]

$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

It seems that what you said is a reality that should be a guideline for a fairly large financial platform.
The role of insiders is very significant and cannot be denied, and it is natural that the % should be higher even though the rest could be hackers playing.
But wisely and, of course, so that investors who have been loyal there do not panic. Bybit claims to be able to overcome it all and that is something that deserves to be appreciated, but this problem will always be an unforgettable memory.

very grateful if bybit can overcome all this well, and the current bad market conditions are not due to bybit being hacked, it is clear from the economic conditions which are indeed not good and bad news about the relationship between sec and crypto maybe

Although we ourselves do not know what a bybit is like inside, it would be wiser for them to say that it is always safe and can be overcome so that investors are not afraid of losing.
Many factors cause the current market situation to be redundant. Maybe bybit is part of the trigger and there could also be other triggers that are common in crypto.

[erus]

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

[Wiwo]

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

Not sure that the news of the Bybit or the Bybit hack incident is the reason for the current market bear, I don't think so and looking at the crypto market trends weeks back we all expect this current bear market as a major correction after the last all-time high, so for sure we should look above just a cold wallet hack and look at some provable elements that make up for this present market situation.

If the Bybit hack could affect the market, it should have been as immediate as possible and not weeks later besides no matter how low the market goes it is still above the previous all-time.

[tequilla_sunset]

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

I wouldn't say its effect is still there, more like uncertainty just engulfed the market overall.
No chain of events to support the bullish news that came and went out.

[erus]

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

~snip~
If the Bybit hack could affect the market, it should have been as immediate as possible and not weeks later besides no matter how low the market goes it is still above the previous all-time.

In conclusion, for now, we may have to be patient with the current market conditions that are slowly falling from the all-time high. We are also confident that the crypto market will rise again to the desired price, which is the all-time high that previously exceeded the price of 109,000 dollars.

Btw, the hacked Ethereum is unlikely to return to ByBit because it has been sent to various wallets and laundered by the hacker.

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

I wouldn't say its effect is still there, more like uncertainty just engulfed the market overall.
~snip~

It can also be said like that and I see now the crypto market has started to turn green, last week Bitcoin fell below 79,200 dollars and now I see it is around above 84,200 dollars.

[Wiwo]

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

~snip~
If the Bybit hack could affect the market, it should have been as immediate as possible and not weeks later besides no matter how low the market goes it is still above the previous all-time.

In conclusion, for now, we may have to be patient with the current market conditions that are slowly falling from the all-time high. We are also confident that the crypto market will rise again to the desired price, which is the all-time high that previously exceeded the price of 109,000 dollars.

Btw, the hacked Ethereum is unlikely to return to ByBit because it has been sent to various wallets and laundered by the hacker.

The point at which the hack could affect the general crypto-currency market is when it get exchanged into fiat but as far as the funds still in the wallet regardless of where it is it will definitely act in advantage of the higher price liquidity against what most people speculated in recent market conditions.

ByBit have replaced the lost funds back to the hotel wallet and everything seems to be normal with the exchange without any customers noticing that a hack ever happened in first place.

[erus]

This news was almost 1 month ago but the effect is still felt now and Bitcoin is having a hard time moving up from $82,000 to its all time high.
In detail, I don't really understand how this hack happened, but I feel like it's all very hard to understand because billions of USD were hacked so easily in the form of Ethereum coins.
It seems like there is a weakness in the ByBit system itself so that hackers are able to steal Ethereum from ByBit's cold wallet, and in essence this is bad news for the crypto market which has caused all crypto prices to plummet, including the price of Bitcoin itself.

~snip~
If the Bybit hack could affect the market, it should have been as immediate as possible and not weeks later besides no matter how low the market goes it is still above the previous all-time.

In conclusion, for now, we may have to be patient with the current market conditions that are slowly falling from the all-time high. We are also confident that the crypto market will rise again to the desired price, which is the all-time high that previously exceeded the price of 109,000 dollars.
Btw, the hacked Ethereum is unlikely to return to ByBit because it has been sent to various wallets and laundered by the hacker.

The point at which the hack could affect the general crypto-currency market is when it get exchanged into fiat but as far as the funds still in the wallet regardless of where it is it will definitely act in advantage of the higher price liquidity against what most people speculated in recent market conditions.

It seems that yes, the hacked Ethereum has only been swapped to Bitcoin and not all of the Bitcoin has been exchanged to Fiat.
I think the hackers are still looking for the right moment to exchange all the Bitcoin to Fiat that was previously from Ethereum. Maybe the intention is not to rush so that it is more anonymous in terms of every transaction of the stolen assets.

ByBit have replaced the lost funds back to the hotel wallet and everything seems to be normal with the exchange without any customers noticing that a hack ever happened in first place.

Bybit's response was very fast and was able to back up funds lost due to hacking. I am sure that Bybit's assets are very numerous because they are able to provide a positive effect to its users, even though hacking had occurred previously.
https://coinmarketcap.com/rankings/exchanges/
Looking at the information from the Exchange ranking on Coinmarketcap, it is also natural that ByBit still has strong funds because it is included in the top 12 exchanges.