Massive Outflows from Bybit Raise Security Concerns
In a startling revelation, cryptocurrency exchange Bybit has reported a staggering $1.46 billion in “suspicious outflows,” as uncovered by blockchain investigator ZachXBT. The analysis indicates that a specific wallet has transferred an astounding 401,346 ETH, valued at approximately $1.1 billion, alongside various forms of staked ether (stETH) to a newly created wallet. This fresh wallet is now engaging in the liquidation of mETH and stETH on decentralized exchanges, as tracked by Etherscan.
So far, the wallet has liquidated around $200 million worth of stETH. In response to these alarming events, Bybit’s CEO, Ben Zhou, took to social media platform X to address the situation. He confirmed that a hacker had gained unauthorized access to the specific ETH cold wallet, resulting in the transfer of all ETH contained within it to an unidentified address. Zhou reassured users, stating, “Please rest assured that all other cold wallets are secure. All withdrawals are normal.”
Adding to the gravity of the situation, ZachXBT further noted on Telegram, “My sources confirm it’s a security incident.” If the reported figure of $1.46 billion is accurate, it would mark the largest cryptocurrency hack in history by dollar value, dwarfing previous incidents such as the $470 million lost in the infamous Mt. Gox hack, the $530 million stolen during the 2018 CoinCheck breach, and the $650 million taken in the Ronin Bridge exploit.
In the aftermath of these transfers, both Bitcoin (BTC) and Ethereum (ETH) saw declines of more than 1.5% and 2%, respectively, reflecting market reactions to the unfolding crisis.
UPDATE (15:44 UTC, Feb. 21): Adds quote from Bybit CEO and details of historical crypto hacks.
