Bybit Reports Security Breach as Hackers Drain $1.4 Billion in ETH and mETH

Cryptocurrency exchange Bybit has reportedly lost over $1.4 billion in liquid-staked Ether (ETH) and MegaETH (mETH) due to a security breach. The incident was flagged by onchain security analyst ZackXBT, who urged users to blacklist addresses linked to the stolen funds, Cointelegraph reported.

Bybit Confirms Breach, Investigates Stolen Funds

Bybit co-founder and CEO Ben Zhou acknowledged the hack. He stated that a transfer was made from the exchange’s multisignature wallet to a warm wallet about an hour before the breach was identified.

JUST IN: Bybit founder confirms $1.4 billion $ETH hack, asserts solvency even if losses remain uncovered. pic.twitter.com/8rE3KHrGRL

According to Zhou, the transaction appeared legitimate but contained malicious code. He said the attackers altered the smart contract logic, allowing them to drain funds. Zhou assured users that the exchange is investigating the breach.

"Please rest assured that all other cold wallets are secure. All withdrawals are NORMAL. I will keep you guys posted as more develops. If any team can help us to track the stolen fund will be appreciated," Zhou wrote.