ByBit hacked: Hackers stole $1.5 billion in Ethereum

Cryptocurrency exchange Bybit has faced an unprecedented blow when hackers stole $1.5 billion worth of Ethereum from its wallet. The event could be the largest theft in history in nominal terms, and new evidence points to the involvement of the North Korean hacker group Lazarus Group.

Details of the largest Bybit hack

Today, February 22, Bybit confirmed that one of their wallets was completely emptied. According to CEO Ben Zhou, the stolen funds amounted to approximately $1.5 billion in Ethereum. The hack occurred during a transfer from a multisig cold ETH wallet to a warm wallet. On Platform X, the exchange said the attack was carried out through “sophisticated manipulation” of the transaction process.The hackers disguised the signature interface, showing the correct wallet address, but changed the logic of the smart contract, which allowed the funds to be withdrawn. Zhou assured users: “Bybit remains solvent, all client assets are backed 1:1, we can cover losses. All wallets are safe. One cold wallet with Ethereum was hacked.” However, he expressed concern about possible mass withdrawals, adding on air: “Even if there is a flight of clients, it is not a problem.”

Communication with Lazarus Group and investigation

Analytics company Arkham Intelligence reported that crypto sleuth ZachXBT provided convincing evidence of involvement in the hack of the North Korean hacker group Lazarus Group, known for the attack on Ronin Bridge in 2022 ($620 million). In its analysis, ZachXBT presented test transactions, associated wallets, forensic charts and attack timing data, which were shared with Bybit for investigation. This confirms online reports pointing to Lazarus as the mastermind behind the biggest hack.

Crypto market reaction and comparison with other thefts

The news increased the negative sentiment on the crypto market: Bitcoin fell by 3%, and Ethereum by 4%. However, the drop turned out to be moderate – in the past, similar incidents caused collapses of more than 10%. For comparison, theft of $1.5 billion is comparable to the 2002 robbery of the Central Bank of Iraq ($920 million, adjusted for inflation – about $1.5 trillion today). The Bernie Madoff scam was estimated at $65 billion, but in real terms the Bybit hack remains the largest single theft.

Key points of the hacker attack on Bybit

• Bybit lost $1.5 billion in Ethereum due to a hacker attack on a multisig wallet.
• Hacking involves the “manipulation” of smart contracts, masking the signature of transactions.
• ZachXBT and Arkham indicate the involvement of the Lazarus Group from North Korea.
• Ben Zhou confirmed the exchange’s solvency and readiness for “customer flight.”
• Market: BTC -3%, ETH -4%; the theft is comparable to the historical bank robbery in Iraq.