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Bybit Exchange Hacked, $1.5 Billion in Cryptocurrency Stolen

On February 21, 2025, a serious incident occurred at Bybit, one of the largest cryptocurrency exchanges. Initial reports surfaced on X (formerly Twitter) from well-known crypto experts. Whale Alert reported that 401,346 ETH (approximately $1.13 billion) was allegedly transferred from Bybit`s hot wallet to an unknown address. Cybersecurity experts from PerkShield also noted the suspicious transfer. Ben Zhou confirmed the hacking of one of Bybit`s cold wallets that stored ETH. Official confirmation later came from the exchange`s official account. What Happened to Bybit Crypto Exchange A hacker attacked Bybit`s multisignature cold wallet. To execute transactions with coins in this wallet, multiple signatures are required. However, the hackers employed a UI spoofing technique, causing signers to see the correct address and a legitimate URL from the Safe wallet management platform. In reality, they signed a transaction that altered the smart contract logic of the wallet. As a result, the hacker gained control over a specific ETH cold wallet and transferred all tokens to an unknown address. Subsequently, it was reported that $560 million in USDT was moved from Bybit`s cold wallet to a hot wallet. Experts from Arkham indicated that two minutes before the funds were withdrawn. According to Meir Dolev, co-founder and CTO of the cybersecurity company Cyvers, two minutes before the funds were withdrawn, the hacker rewrote Bybit`s secure multisignature wallet to delegate calls to a malicious contract. ”The hacker used a legitimate transaction as cover, and users signed it without understanding its essence. From that moment, the hackers gained control over their wallet and no longer needed additional signatures. This is very similar to attacks on WazirX and Radiant Capital,” he noted in a comment for Coinpaper. Bybit emphasized that all other cold wallets are secure. The exchange has not halted withdrawals. ”We want to assure our users and partners that all other Bybit cold wallets remain fully protected. All client funds are safe, and our operations continue as usual without any disruptions,” states the official announcement. The company added that it is investigating the incident and welcomes assistance from any teams experienced in blockchain analytics, asset tracking, and fund recovery. Market Reaction The price of Ethereum reacted sharply by dropping 3% within minutes due to large-scale liquidations. Nearly $200 million in Lido Staked Ether (stETH) was sold within the first 30 minutes following the news. Some users are urging to withdraw funds from the cryptocurrency exchange urgently, while others are confident that the platform will be able to recover the stolen assets. ”Crypto is so centralized when it needs to be that I have no doubt about the return of funds,” wrote one community member. Meanwhile, the former CEO of the cryptocurrency exchange Binance advised Bybit to halt withdrawals. ”Not an easy situation to deal with. Might suggest to halt all withdrawals for a bit as a standard security precaution. Will provide any assistance if needed. Good luck!”, he wrote The article is being updated. crypto.news

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Mysterious Crypto Whale Alert: Massive 401,346 ETH Transfer from Bybit Unveiled

In the fast-paced world of cryptocurrency, large transactions often send ripples through the market, sparking curiosity and speculation. Recently, a significant movement of Ethereum (ETH) has caught the attention of crypto enthusiasts and analysts alike. Whale Alert, a popular service that tracks large crypto transactions, reported a massive ETH transfer of 401,346 ETH from the cryptocurrency exchange Bybit to an unknown wallet. This substantial transaction, valued at approximately $1.133 billion, has ignited discussions about its potential implications and the identity of the mysterious recipient. What Exactly Happened with this Massive ETH Transfer? On [Insert Date – Check Whale Alert for the exact date], Whale Alert tweeted about a noteworthy ETH transfer . The details are as follows: Amount: 401,346 ETH Sender: Bybit Exchange Recipient: Unknown Wallet Value: Approximately $1.133 billion (USD) at the time of transaction Reporting Source: Whale Alert This single transaction represents a considerable sum of cryptocurrency, immediately raising questions about the motivations behind such a large movement and its potential impact on the crypto whale landscape. Why Does a Whale Alert Matter in Crypto? The term “ whale alert ” itself is enough to pique interest within the crypto community. But why is it significant when services like Whale Alert report these large transactions? Here’s a breakdown: Market Insight: Large transactions, especially those involving crypto whales (entities holding significant amounts of cryptocurrency), can offer insights into market sentiment. A massive outflow from an exchange, like in this Bybit case, could indicate various scenarios, from institutional accumulation to over-the-counter (OTC) deals. Price Volatility: While not always the case, significant whale movements can sometimes precede or contribute to price volatility. Traders and investors often monitor whale activity to anticipate potential market shifts. Understanding Fund Flows: Tracking these transactions helps in understanding the flow of funds within the crypto ecosystem. It can shed light on which exchanges are experiencing outflows or inflows, and where large holders are moving their assets. Security and Transparency: Blockchain’s transparent nature allows for the tracking of these large transactions, which is crucial for security and accountability within the decentralized finance (DeFi) space. Bybit to Unknown Wallet: Decoding the Transaction The specifics of this ETH transfer – from Bybit to an unknown wallet – add layers of intrigue. Let’s consider the possible interpretations: Exchange Internal Movement: It’s possible, though less likely given the “unknown wallet” designation, that this is an internal wallet movement within Bybit’s infrastructure. Exchanges often manage numerous wallets for operational purposes. However, transfers to truly ‘unknown’ wallets are usually external. OTC Deal: Large OTC (Over-the-Counter) deals often involve direct transfers from exchanges to private wallets. An entity might have purchased a significant amount of ETH through Bybit’s OTC desk and is now withdrawing it to their secure storage. Institutional Accumulation: An institution or a high-net-worth individual could be accumulating ETH for long-term holding. Moving such a large amount to an unknown wallet, presumably under their control, could be a step towards secure cold storage. DeFi or Staking Activities: While less direct, it’s conceivable that the recipient is planning to deploy this ETH into DeFi protocols for yield farming, staking, or other activities. However, direct exchange wallets are less common for DeFi participation due to security best practices. Simple Withdrawal: The most straightforward explanation is a large withdrawal by a single user or entity from their Bybit account. If a user held a substantial ETH balance on Bybit , this could simply be a personal withdrawal to a private wallet for security or other reasons. Is This Crypto Whale Activity a Cause for Concern? While a whale alert involving such a large ETH transfer is certainly noteworthy, is it necessarily a cause for alarm? Not inherently. Here’s a balanced perspective: Scenario Potential Market Impact Likelihood Exchange Internal Movement Negligible Low (given ‘unknown wallet’) OTC Deal Neutral to Slightly Bullish (indicates institutional demand) Medium Institutional Accumulation Bullish (long-term holding, reduced supply on exchanges) Medium Large User Withdrawal Neutral (could be bullish if moving to cold storage, bearish if planning to sell elsewhere) Medium to High Precursor to Market Dump Bearish (if the whale intends to sell ETH) Low (no direct evidence, speculative) It’s crucial to avoid jumping to conclusions. Large crypto whale transactions are a regular occurrence in the market. While they warrant attention, they don’t automatically signal market upheaval. Context and further on-chain analysis are always necessary for a more informed interpretation. Actionable Insights: Tracking Whale Activity and Staying Informed For crypto enthusiasts and investors, monitoring whale alerts and large transactions can be a valuable tool for staying informed. Here are some actionable insights: Follow Whale Alert and Similar Services: Stay updated on significant on-chain movements by following services like Whale Alert on platforms like Twitter or Telegram. Use Blockchain Explorers: Tools like Etherscan allow you to delve deeper into transaction details, track wallet balances, and analyze transaction history related to these ETH transfers . Context is Key: Don’t react solely to individual whale alerts. Consider the broader market context, news events, and overall sentiment before making any trading decisions based on a single transaction. Diversify Information Sources: Combine on-chain data with other forms of analysis, such as technical analysis, fundamental analysis, and news sentiment, for a well-rounded perspective. Risk Management: Remember that the crypto market is inherently volatile. Always practice sound risk management and avoid making impulsive decisions based on market noise. Conclusion: Decoding the Crypto Whale Mystery The massive ETH transfer of 401,346 ETH from Bybit to an unknown wallet serves as a potent reminder of the dynamic and often enigmatic nature of the cryptocurrency market. While the exact motivations behind this crypto whale activity remain shrouded in mystery for now, its occurrence underscores the importance of on-chain monitoring and informed analysis. Whether it’s an OTC deal, institutional accumulation, or simply a large user withdrawal, such transactions contribute to the ongoing narrative of crypto market evolution and the ever-present influence of large holders. To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum price action. crypto.news