Bybit crypto exchange suffered a major security incident when hackers stole more than $1.4 billion worth of Ethereum ETH. The crypto community reacts strongly to news revealed by ZachXBT that Bybit exchanged funds illegally.

The theft took place from Bybit”s ETH cold wallet storage without approval according to inspection results. Bybit CEO Ben Zhou announced that security signers at his exchange fell victim to a disguised user interface manipulation that let hackers steal over $1.4 billion worth of Ethereum.

Hackers Manipulate Safe Platform Display to Breach Bybit

Zhou revealed that attackers changed the visual display of the Safe platform which tricked Bybit”s security staff into changing the computer code of their Ethereum storage system. Once they had control buyers were able to transfer funds from the exchange to an undisclosed location.

Bybit informed users their other wallets stayed safe from compromise and confirmed that the exchange carried enough funds to operate without trouble. The company confirmed that all user assets are not affected by the attack so withdrawal programs work properly. The exchange wants blockchain security experts to help identify the stolen money”s destination.

The former Binance CEO CZ Zhao told Bybit to pause their withdrawal system to protect users from risks. TRON founder Justin Sun and his team watch the situation carefully while standing prepared to search for the stolen assets.

Bybit Absorbs $1.4 Billion Loss Without Impacting Users

Lookonchain discovered the thief moving Ethereum pieces into many different wallets also used for money laundering. The authorities seek to track the money flow from theft to establish possible ways to recover the funds.

Before the breach Bybit stored $16.2 billion in reserve funds and lost $1.4 billion which represents about 8.64% of its total assets. Despite losing a substantial amount of funds Bybit continues to operate as a solvent business and will absorb the financial losses without affecting user accounts.

The ongoing threat to cryptocurrency exchanges remains high because of breaks in their cold wallet protection and social engineering techniques. The crypto market highlights security importance through Bybit”s urgent actions to fix their system as they teach industry participants to focus on secure checks and constant monitoring.

Watched closely by regulators and industry authorities Bybit will establish a new approach to exchange breaches as it battles this major security incident. Everyone closely observes how Bybit will handle its ongoing search for the stolen assets.