Hackers Steal $1.4 Billion in Ethereum in Largest Crypto Heist

In what is being called the largest cryptocurrency theft in history, a group of hackers managed to steal 400,000 ETH, worth an estimated $1.4 billion, from Bybit exchange’s cold wallet. The attack occurred early Friday morning when the cold wallet, intended to transfer funds to an online hot wallet, was compromised. Using a sophisticated attack that manipulated the smart contract logic, the hackers were able to alter the transaction interface and reroute the funds to an unidentified address.

Bybit's CEO, Ben Zhou, reassured users during a live stream, stating that client funds are secure and that the exchange holds $20 billion in client assets. The company has enlisted cybersecurity experts to investigate the breach and track the stolen funds on the Ethereum blockchain, with some suggesting that the attack may be linked to North Korean hackers, due to similarities with past heists.

Despite the breach, Bybit is allowing users to withdraw Bitcoin and plans to resume Ethereum withdrawals once they secure a loan. The attack has caused Ethereum’s value to drop, with its price falling from $2,823 to $2,685.

Bybit promises to cover the lost funds through its treasury if recovery efforts fail. However, the stolen funds are likely to be laundered, and the investigation is ongoing.