Crypto Catastrophe: Bybit’s $239 Million Lifeline from Binance and Bitget! 😱💰

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Well now, gather ’round, folks! It seems our dear friend Bybit, a crypto exchange that was once the belle of the ball, is now reeling from a most unfortunate incident—a hack that has made off with a staggering $1.5 billion in digital assets! Can you believe it? The rascals targeted Bybit’s cold wallet, that fancy offline storage system, and made off with a heap of Ether. The on-chain data shows that the stolen loot was whisked away faster than a cat on a hot tin roof, transferred into various wallets and liquidated quicker than you can say “Jack Robinson.”

Now, Ben Zhou, the CEO of Bybit, took to the stage like a true showman, assuring the good folks that the other cold wallets are as secure as a squirrel in a tree and that withdrawals are being processed “normally.” Well, bless his heart! 🙄

As the company found itself in a pickle with a surge of withdrawal requests, it turned to its pals at Binance and Bitget, who graciously sent over 88,000 ETH—worth around $239 million! Talk about a financial lifeline! This fresh influx of crypto cash gave Bybit a much-needed boost in liquidity, allowing it to serve the withdrawal requests of its anxious customers.

Bybit detected unauthorized activity involving one of our 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…

— Bybit (@Bybit_Official) February 21, 2025

Authorities Link Breach To North Korean Hacking Group

Now, hold onto your hats, because Friday’s hacking of the Bybit cold wallet is being hailed as the biggest crypto heist in history! Arkham Intelligence and Elliptic have reported that the stolen digital assets were transferred to different accounts and liquidated in the blink of an eye. This caper has easily surpassed the $570 million stolen from Binance in 2022 and the $611 million from Poly Network in 2021. It’s a real doozy!

ByBit CEO says the platform is experiencing “massive withdrawals.”

— FORTUNE (@FortuneMagazine) February 21, 2025

Elliptic has speculated that the notorious Lazarus Group, a state-backed hacking team from North Korea, is behind this dastardly deed. This group is known for its crypto-hacking antics, pilfering billions from various sites. What a world we live in!

Bybit Gets Help From Binance And Bitget

As Bybit struggled to keep its head above water amidst the tidal wave of withdrawal requests, it received a helping hand from its friends at Binance and Bitget. Arkham reported that the exchange received more than 88,000 Ether, or roughly $239 million, from these two generous exchanges.

This infusion of funds is like a shot of whiskey for a weary traveler, boosting Bybit’s liquidity just when it needed it most. Bybit confirmed that its users were moving their funds from the exchange after the news of the hack broke. Can you blame them?

Arkham noted that Bitget transferred 40,000 Ether, or $106 million, to a Bybit cold wallet on February 21st at 19:44 (UTC). Lookonchain suggested that Bitget’s transfer was a vote of confidence to boost liquidity. After all, who doesn’t love a little vote of confidence?

Just ten minutes later, a Binance hot wallet sent over 11,800 Ether, or $31 million, to the same Bybit cold wallet address. In total, Binance has transferred 47,800 Ether, or $127.48 million. It’s a veritable cornucopia of crypto!

CEO Explains Crypto Exchange Remains Solvent

Now, Ben Zhou, the CEO of Bybit, has assured his users that the exchange is as solvent as a well-fed cat. In a post on Twitter/X, he explained that the customers’ funds are backed 1:1, and that the company can weather the storm even if it can’t recover the lost funds. Well, isn’t that a comforting thought?

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2025-02-23 15:46