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Bybit, one of the world’s largest cryptocurrency exchanges, may have suffered a massive security breach. Reports suggest over $1.46 billion in Ethereum was withdrawn from its hot wallets. If confirmed, this could be the biggest crypto exchange hack in history.

Massive Ethereum Withdrawal Sparks Alarm

📅 Date: February 21, 2025
🔍 Hacked Amount: 401,346 ETH ($1.13 billion)
📌 Suspicious Wallet Activity: Funds moved to unknown wallets and traded on DEXes

Crypto analysts first reported the breach on Twitter, with Whale Alert identifying a massive 401,346 ETH transfer from Bybit’s hot wallets. This movement immediately raised concerns about a potential security breach.

Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing…

— Bybit (@Bybit_Official) February 21, 2025

Shortly after, additional transactions showed the stolen funds being moved across multiple wallets. The attackers then converted liquid staking derivatives (stETH and mETH) into ETH, signaling an effort to liquidate the assets quickly.

How Are the Stolen Funds Being Used?

Typically, large ETH transactions occur through over-the-counter (OTC) trading for privacy. However, in this case, the stolen Ethereum was traded on decentralized exchanges (DEXes).

💱 Stolen ETH converted from stETH and mETH
🔄 Transactions spread across multiple wallets
📊 Unusual trading activity raises further suspicion

The decision to sell on DEXes rather than OTC platforms suggests the hackers are in a hurry to cash out. This strategy makes it harder to trace the funds but also risks attracting more attention.

Binance Founder CZ Reacts to Bybit Hack

Binance founder Changpeng Zhao (CZ) spoke out about the situation, advising Bybit to temporarily suspend all withdrawals as a security precaution.

Not an easy situation to deal with. Might suggest to halt all withdrawals for a bit as a standard security precaution. Will provide any assistance if needed. Good luck! 🙏

— CZ 🔶 BNB (@cz_binance) February 21, 2025

However, when a follower suggested that halting withdrawals might spread fear among users, CZ defended his stance:

💬 “$1.5 billion is scary enough. Better safe than sorry now.”

His remarks highlight the severity of the attack and the need for strong security measures.

What’s Next for Bybit?

Bybit has yet to release an official statement, but security experts are closely monitoring the situation. If confirmed, this could be one of the largest crypto exchange hacks ever recorded.

Meanwhile, the crypto community is watching how the stolen funds move and whether Bybit will recover or compensate users affected by the breach.