Bybit Investigates Security Breach In ETH Cold Wallet
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Bybit reported a security breach involving one of its ETH cold wallets, where a sophisticated exploit altered a transaction, allowing unauthorized fund transfers. The company confirmed that its other cold wallets remain secure, with no additional funds affected. Bybit is actively investigating the incident.
The platform explained that the problem began when a normal transfer moved money from a highly secure wallet to another wallet used for daily work. During this transfer, a hacker found a way to change the smart system that handles the movement of money.
Bybit Takes Swift Action To Secure Platform After ETH Cold Wallet Breach
Bybit said the screen showed the right details, but the hidden rules were changed. This allowed the hacker to take the wallet’s control and send the money somewhere else.
According to the report, the hacker used weak points in the smart system to steal the money. Even though the correct details were displayed, the hidden changes allowed the attack to happen. The company said this shows that tricks used to steal money in the blockchain world are getting harder to stop.
The platform said the team moved quickly to handle the problem. The company’s security experts are working with blockchain specialists to look into what happened. The company also invited others who have experience in tracking stolen funds to help with the search.
According to Bybit, the attack did not touch any other part of its system. The company said all other cold wallets are safe, and no customer funds were lost. The team added that business is running as usual without any problems.
Bybit Stresses Security As Former Employee Faces Jail For $5.7M Theft
Bybit said keeping users safe and being open about problems is very important. The company said it will continue to give updates about the situation as soon as there is new information.
Earlier this week, Bybit was in the spotlight for a separate incident. Former payroll executive Ho Kai Xin was sentenced to nearly 10 years in prison for embezzling approximately $5.7 million from the company.
According to reports, Ho manipulated payroll records to authorize unauthorized payments to herself. Beginning in May three years ago, she altered financial documents, transferring hundreds of thousands of dollars to her accounts each month.
She reportedly spent over $4.3 million on luxury goods, vehicles, and real estate. Despite a court order in 2023 to return the stolen funds, she continued spending until her arrest in April two years ago. Bybit confirmed that it successfully recovered $1.2 million of the misappropriated funds.
