Hackers managed to steal 401,347 ETH from Bybit’s cold wallet, marking the largest financial cyberattack ever recorded. For context, this surpasses even the infamous $611 million Poly Network hack of 2021. But how did this happen?
The attack targeted Bybit’s multi-signature Ethereum cold wallet, which is supposed to be ultra-secure. During a routine transfer to a warm wallet (used for daily operations), the hackers exploited vulnerabilities in the system. They used a masked user interface (UI) to trick employees into approving fraudulent transactions.
Imagine signing off on what looks like a standard bank transfer, only to realize later that the money went straight into a thief’s hands. That’s essentially what happened here.
