Crypto Suffers Biggest Hack in History: Bybit Loses $1.4 Billion – Ethereum Traders Liquidated

Bybit has suffered the biggest hack in cryptocurrency history, with over $1.4 billion in Ethereum (ETH) and staked Ethereum (stETH) withdrawn from the exchange. This incident has sent shockwaves through the market, triggering mass liquidations in ETH futures and widespread panic selling.

According to CoinGlass, ETH futures traders faced $76 million in liquidations over the past four hours, with $43 million coming from short positions. In the past 24 hours alone, 183,176 traders have been liquidated, with total liquidations reaching $499.23 million. In response, Ethereum dropped 3% to $2,727, while Bitcoin fell 1% to $98,091.

Bybit CEO Ben Zhou confirmed the attack in a post on X (formerly Twitter), explaining that hackers manipulated a planned transaction, allowing them to withdraw funds from the exchange’s ETH cold wallet.

“The signing message was supposed to modify the logic of our ETH cold wallet smart contract,” Zhou stated. “This hacker took control of a specific ETH cold wallet we had signed and transferred all ETH to this unidentified address.”

Blockchain security researcher ZachXBT was the first to report the suspicious transactions, confirming that the stolen ETH had been distributed across 39 different addresses—likely an attempt by the hackers to cover their tracks and avoid detection.

This incident raises serious concerns about Bybit’s security. Users are strongly advised to withdraw their funds from the platform as soon as possible to avoid potential risks. The large-scale attack and lack of immediate protective measures highlight the platform’s vulnerabilities. In light of recent events, trust in Bybit may be severely damaged, making it extremely unsafe to keep assets on this exchange.

Additionally, similar concerns are emerging regarding the reliability of Binance and Robinhood.com. These platforms have also faced repeated accusations of lacking transparency, technical failures, and potential risks for users. Following the Bybit hack, users are advised to withdraw their funds not only from Bybit but also from Binance and Robinhood.com. Storing assets on these centralized exchanges carries significant risks, and to minimize potential financial losses, withdrawing funds immediately should be a top priority.

For secure cryptocurrency storage, it is recommended to use Electrum one of the safest and most independent wallets. Electrum gives users full control over their private keys and does not rely on centralized platforms, making it one of the best solutions for protecting digital assets.