In a surprising turn of events, major Chinese crypto figures have announced that they will be moving Ethereum to Bybit amid the $1.4 billion hack.
The move is aimed at supporting the platform’s liquidity, thereby helping it recover.
Du Jun, a co-founder of Huobi, deposited 10,000 ETH into Bybit and refused to take it out for a month. Both Conflux and Mask Network co-founders also announced that they have returned ETH to Bybit.
Bitget CEO Gracy Chen stated that they had proactively reached out to Bybit CEO Ben and offered support, offering short-term liquidity with no need for collateral, interest, or commitments. However, as of right now, Bybit’s liquidity has improved and is thought to be self-sufficient.
ByBit Hack: What Happened?
The biggest theft in the history of digital assets has affected Bybit, a cryptocurrency exchange based in Dubai. On February 21, hackers took advantage of the network to steal more than $1.44 billion in Ethereum (ETH).
This cyberattack’s unparalleled scope sets a new record for the biggest security breach in the industry, accounting for about 60% of all cryptocurrency funds stolen in 2024.
After the biggest cryptocurrency exchange breach in history, Bybit CEO Ben Zhou reassured the public that customer assets were secure and that the platform could compensate for losses. Zhou stated on a livestream after the incident that Bybit was trying a regular transfer when the biggest crypto exchange breach ever happened.
Also Read: Bybit Sets New Transparency Standard With Real-Time Liquidation Data In 500 Milliseconds
Modus Operandi of The Hack
The attackers obtained unauthorized access through internal network monitoring, most likely by breaking into official Bybit staff laptops, as reported by UnoCrypto earlier.
The hackers gained control of Bybit’s multi-signature wallet by forging a digital signature, which enabled them to transfer money covertly.
It is hypothesized that a number of Windows and macOS devices were infiltrated, allowing the attackers to have extended access to transaction schedules, operational information, and internal chat logs.
Bybit’s Hack Leaves Huge Market Impact: Investors Still Worried
The crypto market was significantly impacted by the Bybit hack, which caused traders and investors to become quite concerned. A brief decline in trust in the platform and the larger cryptocurrency market resulted from the breach, which targeted the exchange’s security infrastructure.
Fearing more security flaws, several customers hurried to take their money out of Bybit. The value of assets traded on the exchange, especially Ethereum (ETH), which was impacted because of its role in the attack, saw a temporary but noticeable decline as a result.
Concerns over other exchanges’ security procedures were also brought up by the incident, which prompted more scrutiny from investors and regulators. Bybit attempted to reassure users in the wake of the incident by putting in place stronger security measures and providing compensation to impacted individuals.
Notwithstanding the recovery, the breach served as a reminder of the dangers that cryptocurrency exchanges entail and the significance of strong security measures in the sector.
Also Read: Former Bybit Payroll Chief Pleads Guilty To $5.7 Million Fraud, Sentenced For More Than 9 Years