Hacker Steals $1.4B in Crypto: Bybit Withdrawals Unaffected
A hacker moved $1.4B in ETH, triggering concerns over Bybit’s reserves. Despite the breach, withdrawals remain operational.
- A hacker compromised $1.4B, mostly in ETH.
- Bybit moved $200M USDT to its hot wallet, cause unknown.
- Despite the breach, Bybit’s reserves can cover losses, and withdrawals continue.
Hacker Moves $1.4B in ETH, Bybit Reacts
The crypto community was shaken by reports of a massive $1.4 billion hack, with the hacker executing large transfers of 10,000 ETH per address. The breach primarily affected Ethereum holdings, causing a brief 3% drop in ETH price before a swift recovery.
Adding to the uncertainty, at least $200 million in USDT was transferred from Bybit’s cold wallet to its hot wallet within 30 minutes. While it remains unclear whether this move was to facilitate user withdrawals or for an ETH buyback, the rapid transaction volume has drawn significant attention.
Bybit’s Reserves Remain Strong
Despite the massive breach, on-chain data indicates that the $1.4 billion loss accounts for only 8.64% of Bybit’s total reserves, which stand at $16.2 billion. This suggests that Bybit has the liquidity to cover the compromised funds. While security concerns remain, Bybit withdrawals are still operational, even as demand surges from concerned users looking to secure their assets.
ℹ️ℹ️ Updated:
— Spot On Chain (@spotonchain) February 21, 2025
– A hacker has compromised $1.4B.
– The hacker is making large transfers of 10K ETH per address right now.
– At least $200M $USDT was moved from Bybit’s cold wallet to its hot wallet in the past 30 minutes —unclear if it’s for user withdrawals or an ETH buyback.… https://t.co/RNP9xMTUIB pic.twitter.com/0AiqmUMm0a
Market Reaction and Security Implications
The price of ETH initially dropped by 3% in response to the hack but quickly recovered as investors assessed the situation. The event highlights ongoing security vulnerabilities in the crypto space, emphasizing the need for exchanges to reinforce their security measures.
As investigations continue, users are advised to monitor further updates and take necessary precautions when dealing with exchange-held funds.
