- Bybit lost $1.4 billion in a major security breach affecting Ethereum-related tokens.
- Hackers used deceptive tactics to gain access to user funds.
- The exchange is securing a bridge loan and prioritizing withdrawals.
Bybit suffered a security breach, leading to a $1.4 billion loss in Ethereum-related tokens. CEO Ben Zhou confirmed that withdrawals remain open despite delays. The system is managing over 4,000 pending transactions that require several hours to complete the processing. Zhou has assured users that Bybit does not plan to suspend or cancel withdrawals.
Hackers Used Deceptive Tactics to Steal Funds
The hackers presented their malicious transactions to the Bybit team as legitimate deals which the team approved unintentionally. Attacks may have accessed transaction-signing devices to permit unauthorized money transfers. However, Bybit has launched an investigation to identify network vulnerabilities while taking steps to stop potential future attacks.
Bybit executives suspect that hackers manipulated the platform interface to create fraudulent transactions. However, Zhou urged users to report any suspicious activity and remain cautious. The company is introducing stricter security protocols to protect user funds and prevent similar attacks.
Market Reacts to the Bybit Hack
Ethereum prices dropped 4% within 45 minutes of the attack, affecting investor confidence. Crypto research firm Nansen reported that several tokens experienced price declines during the breach. Some affected assets have started recovering, but market sentiment remains uncertain. The hack has raised concerns about the security of centralized exchanges.
To maintain operations, Bybit is securing a bridge loan to address liquidity concerns. The exchange reassured users that all withdrawal requests will be processed despite ongoing delays. Bybit is also reviewing its security framework to prevent future breaches and strengthen its infrastructure.
Bybit Manages Withdrawal Delays
Bybit’s withdrawal system is congested due to the high volume of pending transactions. The exchange is processing requests as quickly as possible. Users have expressed frustration, but Bybit is urging patience. Zhou confirmed that the backlog will be cleared soon, and withdrawals will resume normally.
Retail customers will be prioritized in withdrawal processing, followed by VIP clients and institutions. Bybit executives are closely monitoring the situation to ensure a smooth process. The exchange is also improving its withdrawal system to handle high transaction volumes efficiently. Bybit remains committed to transparency and keeping users informed.
