Investing.com -- Cryptocurrency exchange Bybit has reported a security breach, resulting in the theft of an estimated $1.5 billion worth of cryptocurrency from one of its wallets. The hack was revealed by Bybit's CEO and co-founder, Ben Zhou.

Zhou made a statement via X, explaining that an unauthorized transaction was made from Bybit's Ethereum (ETH) multisig cold wallet to a warm wallet about an hour prior to his post. The transaction was masked, causing the signers to see a disguised user interface that displayed the correct address. The URL for the transaction was from a trusted source, adding to the deception.

However, the signing message was not to transfer funds, but to alter the smart contract logic of the cold wallet. This allowed the hacker to gain control of the specific Ethereum cold wallet and move all the Ethereum to an unidentified address.

Zhou reassured customers that all other cold wallets remain secure and that normal withdrawal operations are unaffected by the breach. He also emphasized that Bybit remains solvent, even if the losses from the hack are not recovered. He confirmed that all client assets are backed 1 to 1 and that Bybit has the capacity to cover the loss.

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