A security breach at crypto exchange Bybit resulted in a sharp drop for Bitcoin, Ethereum, and other altcoins, as over $1.4 billion in cryptocurrency was lost. The incident occurred when an attacker gained control of Bybit’s ETH cold wallet due to a sophisticated attack on the multisig signing interface.
Bybit CEO Ben Zhou confirmed that the exchange’s multisig signing interface was manipulated, allowing the hacker to access and transfer all the ETH in the compromised wallet to an unknown address. However, Zhou assured users that the incident is isolated to the single affected wallet and that hot wallets, warm wallets, and other cold wallets remain secure.
The incident has sparked concerns over exchange security, with many users wondering if they will be able to recover their lost funds. Bybit is working with blockchain forensic experts to track down the stolen money, but so far, the exact amount lost remains unknown. Despite this, Zhou stated that all client assets are 1:1 backed, ensuring that users can rest assured that their deposits and withdrawals are secure.
While the incident has caused significant losses for investors, it is essential to note that Bybit’s security measures are in place to prevent such incidents from occurring in the future. The exchange has taken steps to improve its security protocols and collaborate with experts to prevent similar attacks in the future.
Source: https://finance.yahoo.com/news/bitcoin-ethereum-dogecoin-slump-amid-161531941.html