Ethereum News: Major Security Breach at Bybit Results in $1.5 Billion Ethereum Theft

A significant security incident has rocked the cryptocurrency world, with Bybit confirming that hackers have stolen $1.5 billion worth of Ethereum from its multisig cold wallet. Here’s a closer look at the developments and their potential impact on Ethereum’s future.

Bybit Hacked: $1.5 Billion in Ethereum Stolen

In a major security breach, Bybit confirmed hackers stole $1.5 billion worth of Ethereum, accounting for 70% of its ETH holdings. The attack targeted Bybit's multisig cold wallet, exploiting a UI flaw to gain control. CEO Ben Zhou revealed the breach, sparking panic in the crypto market. Fears of the hackers dumping ETH caused prices to drop. Adding to the chaos, the recent Bybit scandal involving an ex-WeChain manager’s arrest has intensified concerns around the platform’s security.

Bybit Hack Sees $1.4B Lost as Funds Move

Cryptocurrency exchange Bybit has reportedly lost $1.4 billion due to a hacker who continues to move large amounts of Ethereum (ETH) across multiple wallets. On-chain data shows that the attacker is transferring 10,000 ETH per address, raising concerns within the crypto community. Despite the loss, which represents 8.64% of Bybit’s $16.2 billion reserves, the exchange maintains sufficient liquidity to cover the compromised funds. Additionally, at least $200M $USDT was moved from Bybit’s cold wallet to its hot wallet in the past 30 minutes, though it is unclear if it’s for user withdrawals or an ETH buyback.

Ethereum Faces 7% Drop After Bybit Hack: Recovery Uncertain

Ethereum (ETH/USD) saw a significant drop of over 7% from $2,845 to $2,625 following the Bybit hack, where nearly $1.5 billion worth of ETH was stolen. This incident has sparked debate within the crypto community about whether Ethereum should consider rolling back its blockchain to recover the stolen funds. Arthur Hayes, co-founder of BitMEX, and Samson Mow, CEO of JAN3, advocate for such a rollback, citing the 2016 DAO hack as a precedent. Despite Ethereum partially recovering to $2,735, doubts remain about the sustainability of this rebound.

Bybit Announces Recovery Bounty Program for Stolen Funds

The cryptocurrency exchange Bybit has announced a recovery bounty program, offering 10% of the funds recovered to anyone who can help retrieve stolen funds. Bybit recently suffered a major security incident where over $1.4 billion in ETH was stolen by the Lazarus group, allegedly run by the North Korean government. Ben Zhou, co-founder and CEO of Bybit, stated that the exchange wants to reward its community for their expertise, experience, and support through the Recovery Bounty Program.

Ethereum Dominates RWAs with $4.1B AUM and 54.5% Market Share

Ethereum has emerged as the top real-world asset (RWA) with a total value of assets under management (AUM) of $4.1 billion, representing a 10% increase in the past 30 days. Ethereum's RWA market share has also increased by 3.39% to 54.5%, with the number of RWA holders in the ecosystem growing by 3.05% to 62.28K. Data from RWA.xyz reveals that the number of RWA tokens issued on the Ethereum network has reached 163. According to Christine Kim, Vice President of Research at Galaxy Digital, 13 out of 20 financial institutions identified as having built crypto-specific infrastructure and applications are issuing RWAs on Ethereum and its Layer 2 solutions.

Bybit & Phemex Hacks Linked? Stolen $1.4B & $69M Traced to Same Wallet

A major Ethereum security attack on ByBit shook the industry. The hacker swept $1.4 billion from Bybit and $69 million from Phemex through a single Ethereum wallet identified as 0x33d0…8F65. Forensic experts are urgently tracking down the funds, highlighting exchange security concerns in the cryptocurrency market. According to @zachxbt, the Bybit and Phemex hackers are believed to be from the Lazarus Group.