--- Brief Summary of Bybit Exchange Hack (February 21, 2025) Overview On February 21, 2025, Bybit suffered the largest cryptocurrency theft in history, with $1.46–1.5 billion in Ethereum (ETH) and stETH stolen from its multi-signature cold wallet. Hackers manipulated smart contract logic via a phishing attack, deceiving signers through a fake UI.
Attack Details - Social Engineering: Attackers redirected signers to malicious URLs, altering transaction logic during ETH transfers from cold to hot wallets. - Multi-Sig Exploit: Vulnerability in Safe.global’s interface allowed unauthorized fund drainage.
Market Impact - Price Plunge: Bitcoin dropped below $95k, ETH fell 3%, triggering $572M in liquidations within 24 hours. - Historic Scale: Losses surpassed the 2016 DAO hack (10x in value).
Bybit’s Response - User Assurance: Confirmed 1:1 reserves, processed 99.994% of withdrawal requests. - Investigation: Collaborating with experts to trace funds, attributed to Lazarus Group.
Industry Implications Highlights critical flaws in multi-sig security, urging enhanced protocols and audits.