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Bybit Exchange Hacked: $1.4 Billion in Ethereum Stolen

A major hack on Bybit exchange results in the theft of $1.4 billion in Ethereum, with Adam Back criticizing Ethereum's security and others suggesting drastic measures to mitigate the damage.
Published on 2025-02-22

Bybit Exchange Hacked for $1.4 Billion in Ethereum

In a stunning turn of events, the Bybit cryptocurrency exchange has fallen victim to a massive hack, with hackers making off with a staggering $1.4 billion in Ethereum. This breach is one of the largest in the industry's history, raising significant concerns about the security of major exchanges.

Adam Back Criticizes Ethereum's Security

Prominent cypherpunk and Bitcoin advocate Adam Back was quick to weigh in on the incident. Back criticized Ethereum's technology, particularly its Ethereum Virtual Machine (EVM), calling it "complex, fragile, and un-secure." He suggested that such vulnerabilities are why Bitcoin's dominance in the market continues to grow.

Calls for Ethereum Hard Fork

Samson Mow, former Chief Security Officer at Blockstream, proposed a radical solution to the problem. He suggested that Ethereum should perform a hard fork and roll back the blockchain to prevent the stolen funds from being used by North Korean interests. This approach would mirror the response to the 2016 DAO hack, which led to the creation of Ethereum Classic.

Industry Support for Bybit

In a show of solidarity, major exchanges such as Binance, Bitget, and MEXC have provided financial support to Bybit. These exchanges have loaned Bybit significant amounts of Ethereum and staked Ethereum, helping the embattled exchange maintain liquidity during this crisis.

Hackers Convert Stolen Ethereum to Bitcoin

Bybit's CEO, Ben Zhou, revealed that the hackers have begun laundering the stolen Ethereum by converting it into Bitcoin through the Chainflip platform. Zhou has called on the broader crypto community to assist in blocking these transactions and recovering the stolen funds.

Possible Connection to Previous Hacks

The analytics firm Lookonchain has suggested that the same group responsible for the recent $69 million hack of the Phemex exchange may be behind the Bybit breach. This indicates that the same malicious actors may be systematically targeting major exchanges.

Conclusion

The Bybit hack serves as a stark reminder of the vulnerabilities that exist within the cryptocurrency ecosystem. As the industry grapples with this latest breach, it will be important to see how exchanges and the broader community respond to these challenges and work to prevent similar incidents in the future.

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