Reflections on the theft of $1.46 billion caused by the Bybit
In February 2025, a shocking event occurred in the cryptocurrency world - Ethereum (ETH) suffered a massive theft, with the well-known exchange Bybit losing up to $1.46 billion worth of ETH assets. This is not only the most eye-catching news under the keyword ‘ETH stolen,’ but also one of the largest cryptocurrency hacks in history. This article will delve into the details of this event, its market impact, and how ordinary users can prevent similar risks to ensure asset security.
The story of the ETH theft incident: How did Bybit lose $1.46 billion?
On the evening of February 21, 2025, on-chain detective ZachXBT first issued an , stating that Bybit’s cold wallet had unusual fund outflows. Subsequently, Bybit’s CEO Ben Zhou confirmed that hackers manipulated the smart contract logic by deceiving wallet signers with a disguised user interface and malicious URLs, approving a ‘masked transaction,’ transferring approximately 401,346 ETH (worth $11.3 billion) and other liquidity collateral assets (such as stETH, mETH, totaling $14.6 billion) to an unknown address. This incident was quickly dubbed the ‘largest theft in crypto history.’
After the hacker succeeded, they dispersed the funds to 53 wallets, and laundered some assets through mixers (such as eXch) and cross-chain bridges (ChainFlip), even converting 5,000 ETH to Bitcoin (BTC), demonstrating high technical capabilities and premeditation. Although Bybit quickly implemented emergency measures and restored the withdrawal , the incident still caused a ‘bank run’ storm of over $4 billion, severely testing user trust.
Why is ETH frequently stolen? The reasons and lessons behind it
As the world’s second largest cryptocurrency, Ethereum’s high market value and widespread use make it a tempting target for hackers. The recent “ETH theft” incident is not an isolated case, similar incidents have been seen in history, such as the 2016 The DAO attack. So, why is ETH so easily targeted?
1. High liquidity and cashability
ETH has a huge trading volume on major exchanges and DeFi protocols. Hackers can quickly sell or launder funds through decentralized platforms after succeeding, making it extremely difficult to track.
2. The complexity and vulnerabilities of smart contracts
In the Bybit incident, hackers exploited front-end interface vulnerabilities and signature deception to bypass the multi-signature mechanism. This indicates that even cold wallets are not absolutely safe, and the complexity of smart contracts provides opportunities for attacks.
3. Centralization risk exposure
Although cryptocurrencies emphasize decentralization, centralized platforms such as exchanges are still the core nodes of fund management. Once breached, the consequences are unimaginable.
Market impact of ETH theft: oscillation and recovery coexist
After the incident was exposed, ETH price Dropping more than 4% within 24 hours, breaking the key support level of $2,800, the total liquidation amount in the crypto market reached as high as $570 million. However, due to Bybit stabilizing the situation through bridge loans (including 40,000 ETH support provided by Bitget) and its own reserve fund, the ETH price rebounded to $2,830 within 48 hours, demonstrating market resilience.
Furthermore, the recent ‘ETH theft’ incident has sparked intense debate in the community about blockchain rollbacks. Some individuals (such as Samson Mow) advocate for rolling back the Ethereum chain to recover funds, but core developers point out that this would have a devastating impact on the DeFi eco and cross-chain bridges and was ultimately not adopted. In the short term, investor confidence has been shaken, with DEX trading volume surging by 40%, reflecting users’ wariness of centralized platforms.
How can ordinary users protect themselves against ETH theft?
Faced with the increasingly rampant risk of ETH theft, individual users must take proactive measures to protect their assets. Here are some practical suggestions:
Cold storage priority
Store most ETH in a hardware wallet (such as Ledger or Trezor) to avoid long-term exposure in hot wallets or exchanges. Ensure that the mnemonic phrase is backed up offline and do not store it digitally.Beware of phishing and authorization
Check the signature content of each transaction to avoid clicking on unfamiliar links or authorizing unlimited amounts. Using anti-phishing plugins (such as ScamSniffer) can further reduce the risk.Diversify risk
Spread assets across multiple wallets, use small amounts for daily transactions, and store large amounts in cold storage to reduce losses even if one wallet is compromised.
Future Outlook
The $1.46 billion theft case at Bybit has exposed the shortcomings of the cryptocurrency industry in the security field, especially in the areas of multi-signature wallets and user interfaces. In the future, the Ethereum eco may accelerate the implementation of decentralized identity authentication (DID) and smart contract auditing standards. At the same time, exchanges need to strengthen cooperation with on-chain analysis agencies to establish more efficient fund tracking and freezing mechanisms.
For ordinary users, the ‘ETH stolen’ incident is both a warning and an opportunity. Only by raising security awareness and mastering protective skills can one safeguard their digital wealth in the shadow of hackers.
The ‘ETH stolen’ incident at Bybit in 2025 is undoubtedly a milestone case in the history of cryptocurrency security. It reminds us that no matter how advanced the technology is, human negligence and vulnerabilities can become fatal weaknesses. Under the shadow of ETH theft, individual users and industry practitioners need to work together to build a more secure crypto eco.
