Bybit, one of the most active centralized exchanges, has undergone a security incident. Over $1.46B has flowed out to four Ethereum addresses, and some of the funds are being swapped on DEX.Â
On-chain investigator ZachXBT noted a series of suspicious outflows from Bybit’s wallets. Cyvers also noted abnormal activity from the Bybit wallets. Previously, the exchange was also attacked by address poisoning unrelated to the current hack.Â
🚨ALERT🚨Our system has detected abnormal activity, including suspicious behavior involving the @Bybit_Official wallet!
Several wallets are exhibiting highly suspicious patterns, and we are actively reaching out to the exchange to warn them. The total affected assets are… pic.twitter.com/iAQqlgU4Rf— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) February 21, 2025
The exchange saw outflows of $1.46B for mETH and stETH, which is being swapped back into ETH through DEX. The ETH can then be mixed and remain untraceable, causing one of the first big security incidents against an exchange for 2025.
Based on a very quick back of the envelope calculation, of the numebrs in the latest @Bybit_Official published "Reserve Ratios", the company still look solvent, despite the massive loss over $1bnhttps://t.co/JMWu5Luayl https://t.co/879ZZ18raH pic.twitter.com/0pJOTOxcxv
— BitMEX Research (@BitMEXResearch) February 21, 2025
Despite the losses, recent estimates show Bybit remains mostly solvent, and the larger part of user funds are unaffected. Based on the published reserve ratios of Bybit, the exchange can cover all user claims from its excess holdings, though not repay the lost ETH in kind.
Bybit explained the attack as a diversion of funds, which manipulated the destination address. The exchange was otherwise carrying out a routine operation of moving funds between its cold wallet and a hot wallet.Â
ZachXBT narrowed down the incident outflows to five flagged wallets, suggesting all other exchanges and services should blacklist them.
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