Bybit Crypto Exchange Suffers Massive $1.5 Billion Hack
In what is being described as one of the largest cryptocurrency heists in history, Bybit, a Dubai-based crypto exchange, reported a loss of nearly $1.5 billion in tokens. According to American Banker, the hack targeted one of Bybit's offline Ethereum wallets, also known as a cold wallet, which was compromised during a routine transfer to a warm wallet. CEO Ben Zhou confirmed that the hacker manipulated the smart contract logic, gaining control of the wallet and transferring the funds to an unidentified address. Despite the breach, Bybit assured its users that all other wallets remain secure and that the exchange is solvent, with all client assets backed one-to-one.
Crypto analyst ZachXBT estimated the stolen assets, primarily Ethereum and staked Ethereum, were distributed across 39 different addresses. Arkham Intelligence corroborated these figures, highlighting the scale of the attack. The Financial Times noted that this incident surpasses previous major crypto hacks, such as the $625 million Ronin Network breach in 2022. Bybit processes over $36 billion in daily trades, making it one of the largest crypto exchanges globally. The hack has reignited debates about the security of cold wallets and the need for stricter regulations in the crypto industry.
Sources: American Banker, Financial Times
Coinbase Lawsuit Dismissal Signals Regulatory Shift
Coinbase, the largest cryptocurrency exchange in the U.S., announced that the Securities and Exchange Commission (SEC) is set to dismiss its two-year lawsuit against the company. According to Forbes, the lawsuit, filed during the Biden administration, accused Coinbase of operating an unregistered securities exchange. Paul Grewal, Coinbase's Chief Legal Officer, stated that the dismissal represents a significant win for the crypto industry and the 52 million Americans who own digital assets. The SEC's decision comes amid a shift in political leadership, with President Donald Trump advocating for a more crypto-friendly regulatory environment.
Investopedia reported that the SEC's move to drop the case reflects a broader change in its approach under the Trump administration. Pro-crypto figures, such as Paul Atkins, have been nominated to lead the agency, signaling a potential easing of regulatory pressures on the industry. Coinbase shares rose 4.5% following the announcement, reflecting investor optimism about the future of crypto regulation in the U.S.
Sources: Forbes, Investopedia
Pro-Russia Hackers Target Italian Banks
Italian banks were hit by a series of Distributed Denial of Service (DDoS) attacks, claimed by the pro-Russia hacker group NoName057. According to American Banker, the attacks were reportedly in response to comments made by Italian President Sergio Mattarella regarding Russia's invasion of Ukraine. The cyberattacks disrupted operations at several major financial institutions, highlighting the growing threat of politically motivated cyber warfare.
The incident underscores the vulnerabilities in the financial sector and the need for enhanced cybersecurity measures. Experts warn that such attacks could become more frequent as geopolitical tensions escalate.
Source: American Banker
Sources:
- Nearly $1.5 billion in tokens lost in Bybit crypto exchange hack
- Crypto Exchange Bybit Reports Hack, Analysts Estimate $1.5 Billion Loss
- Hackers steal $1.5bn from crypto exchange Bybit in biggest-ever heist
- Coinbase Says SEC Will Drop Lawsuit Against Crypto Exchange—Citing Change In ‘Political Leadership’
- Coinbase Stock Jumps After Crypto Exchange Says SEC Looking To Dismiss Lawsuit
- Bybit crypto exchange suffers largest ever hack of more than $1 billion
