Crypto Opinions & News Hacker steals record $1.46 billion from Bybit ETH cold wallet

[Gandalf_The_Grey]

Content source

https://www.bleepingcomputer.com/news/security/hacker-steals-record-146-billion-from-bybit-eth-cold-wallet/

Cryptocurrency exchange Bybit revealed today that an unknown attacker stole over $1.46 billion worth of cryptocurrency from one of its ETH cold wallets.

"The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic," Bybit explained.

"As a result, the attacker was able to gain control of the affected ETH cold wallet and transfer its holdings to an unidentified address."

The crypto exchange says its security team is now investigating the incident with the help of external blockchain forensic experts. According to Bybit, anyone with the expertise to help track the stolen funds is also welcome to assist.

Bybit says all other cold wallets are fully secure, client funds are safe, and exchange operations were undisrupted by the incident.

"Please rest assured that all other cold wallets are secure. I will keep you guys posted as more develops, If any team can help us to track the stolen fund will be appreciated," Bybit's CEO said.

"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."

Hacker steals record $1.46 billion from Bybit ETH cold wallet

Cryptocurrency exchange Bybit revealed today that an unknown attacker stole over $1.46 billion worth of cryptocurrency from one of its ETH cold wallets.

www.bleepingcomputer.com

 

[bazang]

No consumer/wallet protections in cryptos. The best one can hope for is that the exchange has enough cash to cover the consumers' losses and they are willing to cover the losses. Otherwise, there are absolutely no requirements to cover consumer against loss if the infrastructure is hacked. The whole crypto industry does not want to be required to provide consumer protections in such cases. There are entities within the crypto industry that are mightily mad that Bybit is covering the losses. Gee. Now let's think as to why that is the case?

 

[[correlate]]

This hack is one of many that represent a dramatic shift in how centralized exchanges are compromised. For years, the industry has focused on hardening code and improving their technical security practices, but as the ecosystem’s secure development life cycle has matured, attackers have shifted to targeting the human and operational elements of cryptocurrency exchanges and other organizations.

The $1.5B Bybit Hack: The Era of Operational Security Failures Has Arrived - The Trail of Bits Blog

 

[Zero Knowledge]

It's always some form of social engineering that gets the job done. Attack the weakness which is humans.