Bybit experiences a devastating $1.46 billion ETH security breach, with industry leaders including Binance’s CZ stepping in to offer support and guidance on preventing further losses.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Bybit, a leading crypto exchange, had recently suffered a security breach that resulted in a massive loss of $1.46 billion in Ethereum (ETH). This incident has sent a shockwave across the industry, raising concerns about security on crypto exchanges.
Binance founder Changpeng “CZ” Zhao has stepped in to help, advising Bybit CEO Ben Zhou on ways to prevent more financial losses on the platform. Other crypto leaders have also shown support as Bybit deals with the aftermath of the security breach.
Many top crypto leaders have also shown support for Bybit. CZ recently advised Bybit’s CEO, Ben, to stop withdrawals to prevent further losses. He believes this is an important measure to protect users. His advice follows similar actions other crypto exchanges took after facing related hacks.
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! 🙏
— CZ 🔶 BNB (@cz_binance) February 21, 2025
Last year, Coinspeaker covered multiple instances of crypto exchanges halting withdrawals due to security breaches. Most recently, zkLend, a decentralized finance (DeFi) protocol, suspended withdrawals after losing over $9 million in a hack.
Binance co-founder Yi He has also offered to help Bybit get through this crisis. Tron founder Justin Sun also stepped in, saying he would help track down the stolen money. Additionally, the crypto community has shown solidarity with Bybit, pushing for stronger security measures across exchanges.
Security experts opine that this hack serves as a wake-up call for the entire crypto industry. Security breaches remain a major issue in Web3, and this latest attack highlights the urgent need for better protection.
Community members believe exchanges must invest in advanced security protocols and conduct frequent audits. The consensus is that strong withdrawal verification processes should be implemented to prevent large-scale thefts.
Users should be more cautious when using hardware wallets and enable two-factor authentication (2FA) for better protection. 2FA is re-emphasized, considering the attacker used a technique involving a “musked” transaction method, a highly sophisticated scheme.
This malicious act led the team to approve normal transfers, allowing hackers to gain control of an important offline wallet.
The hack has affected the price of Ethereum, considering Bybit is a big platform for ETH trading. After the attack, ETH’s price dropped sharply as investors sold impulsively to minimize the fallout from any lingering security risks.
Right now, Ethereum is trading at about $2,653, down 3.66% in the last 24 hours, according to market data. Before the attack, the coin traded around $2,741.59. Ultimately, fears about stolen funds and possible sell-offs have made the market unstable.
However, Ethereum’s price could stabilize in the short term, riding on its correlation with Bitcoin, which currently has a high level of institutional interest.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
