CEO Announces Customer Withdrawals Will Be Processed After $1.4 Billion Hack

Bybit’s co-founder and CEO, Ben Zhou, responded to audience questions about how customer withdrawals will be processed following the $1.4 billion hack on Friday morning.

In a live broadcast on X Space, Zhou confirmed that all customer withdrawals will be processed, even if they are under review. Instead of purchasing Ethereum, the firm plans to ease the process by obtaining a bridge loan (short-term loan) from its partners.

“We are currently reaching out to our partners for a bridge loan. We are not buying [Ethereum] right now. Even if we wanted to, it’s too large of an amount to move around,” Zhou said.

“We are getting support from our partners. We have actually secured almost 80% of the stolen Ethereum as a bridge loan to help us overcome the liquidity crunch and get through this critical period,” he added.

Bybit confirmed it lost $1.4 billion in funds after a hacker gained access to the firm’s multisig cold wallet, which has been described as “the largest crypto theft of all time” by an expert.

Bybit, a centralized exchange based in Singapore, recorded a spot market volume of $233.36 billion in January.

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The post Bybit CEO Says 80% of Stolen ETH Recovered After Hack appeared first on Coin Engineer.

Suspicious Withdrawals Exceeding $1.28 Billion from Bybit

One of the most significant developments in the cryptocurrency market is the massive withdrawal activity from the popular exchange Bybit, exceeding $1.28 billion. On-chain analysis reveals that a large portion of these funds consists of mETH (Mantle Staked Ether) and stETH (Lido Staked Ether) assets.

While users and investors debate the impact of these unusual movements on the market, on-chain detective ZachXBT, based on information from trusted sources, has stated that the withdrawals are confirmed to be secure. However, the potential effects of such large-scale movements on the crypto ecosystem cannot be overlooked.

Suspicious Withdrawals and Hack Possibility from Bybit: Warning from 0xngmi

Recent developments indicate unauthorized transfers from Bybit’s ETH cold wallet. On-chain analyst and DeFiLlama founder 0xngmi carefully examined the situation, stating, “The recipient wallet is draining all tokens, this is definitely a hack. If it were just a transfer, they wouldn’t have emptied everything.” This highlights a major security breach due to a masked UI spoofing attack, leading to unauthorized transfers.

What’s Behind the Bybit Attack?

Following the incident, Bybit confirmed that the transfers from the ETH cold wallet occurred due to a masked UI spoofing attack. These attacks use fake interfaces to mislead users’ wallet information, resulting in the theft of hacked funds. Investors are likely to panic due to security vulnerabilities on the platform, which could seriously undermine trust in the crypto ecosystem.

Statement from Bybit CEO

Bybit CEO Ben clarified: “Only one cold wallet with ETH was affected; other wallets remain secure.”

“The mistake allowed the hacker to take control of the specific ETH cold wallet we had signed and transfer all the ETH to this anonymous address. Please rest assured that all other cold wallets are secure. All withdrawals are NORMAL. We will keep you informed of any further developments. If any teams can assist in tracking the stolen funds, we would greatly appreciate it.”

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The post Breaking News! Is Bybit Being Hacked? appeared first on Coin Engineer.