Bybit stolen 1.46 billion USD, ETH Hacker incident analysis

With the booming development of the cryptocurrency market, Ethereum (ETH) has become a coveted ‘tasty morsel’ for hackers due to its powerful smart contract functionality and wide range of applications. In February 2025, a shocking ‘ETH hacker’ incident once again brought the security issues of the cryptocurrency industry to the forefront - the well-known cryptocurrency exchange Bybit suffered the largest-scale hacker attack in history, with approximately $1.46 billion worth of Ethereum stolen. This article will delve into the causes and consequences of this event, explore its impact on the ETH market, and provide practical advice to prevent similar attacks.

ETH Hacker Incident: Bybit loses $1.46 billion

On the evening of February 21, 2025, Beijing time, the on-chain detective ZachXBT first revealed that there was abnormal fund flow on the Bybit platform, with a large amount of ETH transferred from its cold wallet. Subsequent investigations showed that hackers successfully stole about 401,346 ETH (worth about 1.13 billion US dollars) through a carefully planned attack, along with some liquidity collateral tokens (such as stETH), resulting in a total loss of up to 1.46 billion US dollars. This amount not only breaks the record of cryptocurrency theft cases but also makes Bybit the focus of attention for the early 2025 security incident.

Bybit CEO Ben Zhou quickly responded through social media, acknowledging that the Hacker used a disguised user interface to deceive wallet signers, tampering with the smart contract logic of the cold ETH wallet into a malicious version, ultimately controlling the flow of funds. On-chain data shows that the stolen ETH has been dispersed to dozens of addresses, with some funds being laundered through decentralized exchanges (DEX) and cross-chain bridges, demonstrating the Hacker’s advanced technical skills and meticulous planning.

Why is ETH repeatedly targeted by hackers?

As the second largest cryptocurrency by market value, Ethereum‘s high liquidity and market depth make it the preferred target for hackers. The recent Bybit incident is not an isolated case, with numerous similar cases in history. For example, the 2016 The DAO incident, where hackers exploited smart contract vulnerabilities to steal 3.6 million ETH, forcing the Ethereum community to implement a hard fork. So why is ETH so ‘attractive’ to hackers?

1. Strong liquidity, quick realization

ETH has very high trading depth on major exchanges worldwide, and hackers can quickly launder funds through mixers (such as Tornado Cash), cross-chain bridges, or over-the-counter (OTC) transactions to reduce tracking difficulty.

2. The complexity of smart contracts

Ethereum’s smart contract functionality is powerful but complex, and code vulnerabilities are often exploited by hackers. In the Bybit incident, hackers manipulated the front-end interface to deceive signers into approving malicious transactions.

3. Large market size

The Ethereum eco supports many areas such as DeFi, NFT, etc., and the huge flow of funds has attracted the attention of national-level hacker organizations (such as the suspected Lazarus Group involved in the case).

Event Impact: ETH price fluctuations and industry reflection

After the Bybit hacking incident occurred, Ethereum price It fell more than 4% in 24 hours, briefly falling below a key support level. Panic spread in the market, and more than 170,000 investors liquidated their positions, losing about $570 million. However, since the hackers have not yet sold ETH on a large scale, and Bybit has stabilized the situation by bridging loans and its own reserves, there is no “run crisis” similar to the FTX crash in the short term.
For the crypto industry, this incident is a wake-up call.

The security of centralized exchanges is once again being questioned, with users accelerating their shift towards hardware wallets and decentralized exchanges (DEX), the latter experiencing a 40% surge in trading volume in the past 24 hours. At the same time, discussions within the community regarding the ‘possibility of implementing a fork rollback for ETH’ are heating up, although experts believe the likelihood of this happening is low.

4. How individuals can prevent ETH hacker attacks

With the frequent occurrence of hacker incidents involving Ethereum (ETH), such as the astonishing case of Bybit being stolen $1.46 billion in February 2025, individual users are increasingly aware of the importance of asset security. Hackers often launch attacks by exploiting technical vulnerabilities and user negligence, so mastering effective protection measures is crucial to safeguarding ETH assets. Here are practical steps that individual users can take to help you protect your wealth in the unpredictable world of cryptocurrency.

1. Be vigilant against phishing attacks and authorize transactions with caution
Hackers trick signers into approving malicious transactions through a disguised interface, a “phishing” tactic that is more common among individual users.

• Protective measures:

1. Check the URL to make sure you are visiting the official website (such as Metamask.io, not Metammsk.com).

Before signing the transaction, carefully read the contents of the smart contract to avoid blindly authorizing unlimited approval.

1. Use bookmarks to go directly to commonly used DApps and avoid clicking on unknown links through search engines.

• Tip: Install browser add-ons (such as EAL or ScamSniffer) to detect malicious websites in real-time.

2. Diversify assets to reduce single risk
Putting all ETH in a single wallet or platform is like putting all your eggs in one basket. Once a Hacker succeeds, the consequences are unimaginable.

• Suggestion:

1. Use a small amount of ETH for daily transactions (such as storing it in the Metamask hot wallet), and transfer large assets to a hardware wallet or a multi-signature wallet (such as Gnosis Safe).

2. Disperse the storage of mnemonic phrases and private keys, such as dividing the backup into three copies and storing them at home, bank safes, and trusted relatives and friends.

• Benefits: Even if one wallet is compromised, other assets are still safe.

3. Update the software to fix security vulnerabilities
Outdated wallet software may be a hacker’s breakthrough. The Ethereum eco is updated frequently, and vulnerabilities are patched accordingly.

• Operation suggestion: Regularly update wallet applications (such as Metamask, Trust Wallet) and operating s to ensure the use of the latest version. Only download from official channels to avoid third-party stores or APK files of unknown origin.

• Note: Backup your wallet before updating to prevent data loss.

4. Enable two-factor authentication to enhance account protection
Many hackers indirectly control wallets by stealing email or social account, so protecting associated accounts is crucial.

-Suggestion:
Enable two-factor authentication (2FA) for emails, exchange accounts, and wallet apps, and prioritize app-based time verification codes (e.g., Google Authenticator) to avoid SMS verification, which can be easily hijacked by SIM cards.

• Additional measure: Use a separate email to manage encrypted assets to avoid mixing with daily social emails.

5. Learn the basics and identify scams
No matter how strong the technology is, it cannot withstand the ignorance of users. Many ETH theft cases stem from users’ lack of basic security awareness.

Suggestion:

1. Learn how to identify common scams, such as ‘airdrop scams,’ ‘fake customer service,’ or ‘double investment’ temptations.

2. Join trusted communities (such as r/ethereum on Reddit) to learn about the latest hacker techniques.

3. Maintain skepticism towards projects that seem too good to be true. Any request for private keys or mnemonic phrases is a red line.

• Example: If you receive unknown tokens from a strange wallet, do not interact, as it may trigger malicious contracts.

With the above measures, individual users can build a solid security barrier in the increasingly rampant environment of ETH hackers. Technology is important, but awareness of prevention is the key. Instead of regretting afterwards, it’s better to take action now to ensure that your Ethereum assets are as solid as gold soup.

Future prospects

The Bybit incident exposed the vulnerability of the current crypto eco in terms of security, especially in multi-signature wallets and front-end interaction. In the future, the Ethereum community may accelerate the advancement of security technologies, such as stronger identity authentication mechanisms (like DID) and a more transparent contract audit process. At the same time, exchanges need to collaborate with security agencies to establish hacker tracking and fund freezing s, making it impossible for criminals to escape.

The “ETH hack” incident in 2025 is undoubtedly a severe test in the history of cryptocurrency development. Marked by the theft of $1.46 billion from Bybit, this incident not only highlights the attractiveness of ETH, but also reveals the urgency of building security in the industry. For investors, it is important to raise security awareness and choose a reliable platform; For the entire eco, only by paying equal attention to technology and regulation can we move forward steadily in the shadow of hackers.