- Bybit’s $1.4B hack sparks debate on Ethereum’s EVM security and multisig wallet flaws.
- The Bybit breach highlights ongoing vulnerabilities in crypto exchanges and wallet setups.
- Experts question whether Ethereum’s design or multisig errors led to the Bybit hack.
The Bybit hack that drained $1.4 billion worth of Ether-related tokens currently generates intense debates among cryptocurrency enthusiasts. Adam Back co-founder of Blockstream and a prominent Bitcoin advocate, attributes the breach to flaws in the Ethereum Virtual Machine (EVM).
He argues that the EVM’s design complicates transaction verification, particularly on hardware wallets. On February 23, Back posted on X, claiming the hack reflects broader issues with Ethereum’s security that tarnish the credibility of the entire crypto ecosystem, including Bitcoin.
In contrast, other experts challenge Back’s focus on the EVM, suggesting the problem lies elsewhere. The Bybit incident, one of the largest crypto hacks to date, has raised questions about whether technical design or human oversight is the true weak link. While Back insists Ethereum’s complexity invites such losses, the community remains split on the root cause, with some pointing to operational errors as a more likely culprit.
Multisig Vulnerabilities Take Center Stage
Critics of Back’s stance highlight vulnerabilities in multisignature (multisig) wallets as a key factor in the Bybit hack. Dyma Budorin, CEO of cybersecurity firm Hacken, told Cointelegraph that multisig weaknesses affect all blockchain ecosystems, not just Ethereum. He notes that Bitcoin’s simpler multisig setups still face risks like phishing or human error. This perspective suggests that the breach stemmed from flawed execution rather than an inherent EVM defect.
Lex Fisun, CEO of Global Ledger, supports this view, emphasizing that only one of Bybit’s Ethereum cold wallets was compromised. He explains that attackers likely exploited the approval process for a malicious transaction, a common issue in multisig setups. Although Fisun acknowledges the EVM’s potential role, he stresses that insufficient evidence ties it directly to the hack. This debate underscores the shared security challenges across crypto platforms, regardless of the underlying technology.
Broader Implications for Crypto Security
The Bybit hack has increased worldwide attention toward centralized exchange security practices. The hacker reportedly holds a position among the top 14 Ethereum holders in the world surpassing figures such as Vitalik Buterin according to reports. Bybit, a centralized platform, has not clarified the EVM’s involvement, leaving room for speculation. Meanwhile, CEO Ben Zhou claims the exchange has addressed the financial shortfall, though details remain scarce.
This incident highlights the ongoing tension between blockchain design and operational safeguards. As Ethereum and Bitcoin advocates trade arguments, the event serves as a reminder of the persistent risks in crypto. Whether the flaw lies in the EVM or multisig management, the hack exposes vulnerabilities that could shape future security standards across the industry. For now, the cryptocurrency community awaits further insight as investigations continue.
