In a major security breach, 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 magnitude of the loss, which represents 8.64% of Bybit’s $16.2 billion reserves, the exchange maintains sufficient liquidity to cover the compromised funds.
According to Spot on Chain,Accompanying the ETH movements, at least $200 million in USDT was moved from Bybit’s cold wallet to its hot wallet within the last 30 minutes. It remains unclear whether this transfer is meant to facilitate user withdrawals or as part of an ETH buyback strategy. The sudden shift in funds has sparked speculation about Bybit’s internal liquidity management and its potential response to the security breach.
Following news of the hack, Ethereum’s price dropped by 3% but quickly recovered, highlighting the market’s resilience despite the significant scale of the compromised funds. Most of the stolen assets are held in ETH, with the hacker continually moving them to new wallets, potentially in an attempt to obfuscate the transaction trail. The rapid transfer activity has prompted heightened surveillance from blockchain analysts and security firms.
Hacking Exposed, Withdrawals Active, Future Implications
Analysis of on-chain data indicates that the Bybit hot wallet (0x1db92e2ee) was compromised, with ETH and stETH being transferred to a new wallet (0x47666Fab). The attacker has been systematically dispersing the funds to different wallets, possibly to prevent tracking and recovery. The hacker’s meticulous approach and the scale of the heist have raised questions about the security protocols in place at Bybit.
Despite the breach, Bybit’s withdrawal services are still operational, even as the platform experiences a surge in demand from users concerned about the safety of their assets. The company has yet to issue an official statement on the incident, but its ability to maintain withdrawals suggests that it still holds a strong liquidity position, mitigating fears of a liquidity crisis.
The Bybit hack is one of the largest in recent history, putting a spotlight on the security of centralized crypto exchanges. While Bybit’s reserves indicate it can absorb the loss, the incident is likely to trigger renewed scrutiny of security measures across the industry. As investigations continue, market participants are watching closely to see how Bybit manages the fallout and whether additional exchanges may be targeted.
The breach underscores the importance of robust security frameworks and may accelerate the adoption of decentralized solutions as users seek safer alternatives. The ongoing movement of funds also highlights the need for enhanced blockchain monitoring tools to detect suspicious activity in real-time.
