ZachXBT: $1.46B flowed out of Bybit Ethereum (ETH) cold wallet

Bybit, a major cryptocurrency exchange, experienced a security breach resulting in the loss of $1.46 billion worth of Ethereum (ETH) from its cold wallet. This occurred during a routine transfer of ETH from the cold wallet to a hot wallet, which was exploited. The hacker manipulated the transaction, redirecting the funds to four different Ethereum addresses. This is the largest cryptocurrency hack of 2025, representing 8.64% of Bybit's $16.2 billion in total reserves. The hack specifically targeted Bybit's ETH cold wallet using a sophisticated attack that masked the signing process. The exchange uses the Safe layer on Ethereum, but human error may have played a role, potentially through a failure to verify the destination address. Bybit's other wallets remain unaffected, and the exchange continues to operate. The stolen ETH is being swapped for other Ethereum-based assets and then back into ETH on decentralized exchanges, likely to obscure the funds' origin. This incident follows similar attacks on WazirX and Radiant Capital in 2024. Following the news, the price of ETH dropped by 2.9% to $2,752.42, and Bitcoin fell below $99,000. Bybit's CEO has assured users that the exchange remains solvent and will continue operating.