Crypto exchange Bybit reported a massive security breach, resulting in a $1.5 billion Ethereum (ETH) outflow, which led to a significant drop in Bitcoin and Ether prices. The incident occurred on Friday, with Bitcoin (BTC) sliding near $97,000 and Ether slipping nearly 4% below $2,700.
Bybit CEO Ben Zhou confirmed the hack in an X post, saying it was a “suspicious” $1.5 billion ETH outflow that sparked concerns among traders. The sudden downturn liquidated roughly $100 million worth of leveraged derivatives trading positions, mostly anticipating prices to rise.
Blockchain sleuth ZachXBT initially noted the unusual outflow, which caught the attention of investors and led to a reversal of early gains. As a result, cryptocurrency prices dropped on Friday, reversing earlier momentum.
The incident highlights the ongoing vulnerability of crypto exchanges to security breaches and the importance of investor vigilance in monitoring market activity. Bybit has not disclosed further details about the breach or its response efforts.
Source: https://www.coindesk.com/markets/2025/02/21/bitcoin-ether-slumps-as-crypto-prices-crumble-on-report-of-massive-usd1-4b-bybit-security-incident