In a shocking turn of events, cryptocurrency exchange ByBit has suffered a major security breach, resulting in the loss of approximately $1.4 billion worth of Ethereum (ETH) and staked Ethereum (stETH). The attack, which was detected earlier today, has sent shockwaves through the crypto community.
Details of the Hack
ByBit detected unauthorized activity involving one of its ETH cold wallets. The incident occurred when ByBit’s ETH multisig cold wallet executed a transfer to its warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic. As a result, the attacker gained control of the affected ETH cold wallet and transferred its holdings to an unidentified address.