February 22, 2025
Withdrawals Unaffected
The attackers used a “masked” UI and URL to trick wallet signers into unknowingly authorizing a malicious transaction, allowing them to manipulate the smart contract and steal the funds. The incident is under investigation, but Bybit reassured users that other cold wallets remain secure and withdrawals are unaffected.
Early speculation suggested Bybit might buy back ETH to cover the losses, briefly pushing ETH’s price up. However, Bybit CEO Ben Zhou clarified that the exchange secured a bridge loan for 80% of the stolen ETH, and it had no plans to buy ETH on the spot market. This shift in sentiment led to a bearish outlook.
Will the Hacker Sell?
The hacker now holds over 500,000 ETH, spread across 53 wallets. While selling such a large amount of ETH would trigger significant market downturns, the hacker’s focus may not be on achieving the highest price since the ETH was acquired at no cost.
The hack coincides with ETHDenver, a major Ethereum event, which historically drives bullish sentiment. However, weak sentiment in the Ethereum community, combined with internal controversies, has dampened enthusiasm, further impacting ETH’s outlook.
