- Cryptocurrency exchange Bybit reported unauthorized transfer from its ether cold wallet to an unknown address.
- CEO Ben Zhou confirmed all client funds remain secure and operations continue normally.
- The incident was isolated to a single ether cold wallet, with all other wallets unaffected.
- Bybit maintains solvency and can cover potential losses from the hack.
- The exchange serves over 60 million users globally and continues normal withdrawal operations.
Cryptocurrency exchange Bybit disclosed a security breach affecting one of its ether cold storage wallets on Friday, marking another significant incident in the crypto security landscape. The attacker managed to gain unauthorized access and transfer assets to an unidentified wallet address.
Ben Zhou, Bybit’s CEO, moved quickly to reassure the platform’s user base, stating, “All client funds are safe, and our operations continue as usual without any disruption.” The exchange, which serves more than 60 million users worldwide, emphasized that the breach was isolated to a single ether cold wallet, with all other digital asset storage systems remaining secure.
Cold wallets, which store cryptocurrency offline for enhanced security, are typically considered more secure than their “hot wallet” counterparts. This incident highlights the ongoing challenges faced by cryptocurrency exchanges in maintaining robust security measures, even with advanced storage solutions.
Bybit demonstrated financial stability in its response, with Zhou asserting, “Bybit is solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss.” The exchange’s security team, working alongside forensic experts, has launched a comprehensive investigation into the incident.
This security breach follows a pattern of targeted attacks on cryptocurrency exchanges, though Bybit’s immediate transparency and strong financial position sets it apart from previous incidents. The exchange maintains its status as a major player in the cryptocurrency market, offering trading services for various digital assets including Bitcoin and Ether.
The incident serves as a reminder for cryptocurrency investors about the importance of platform security and the need for exchanges to maintain robust emergency protocols and sufficient reserves to protect user assets.
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