Bybit Crypto Exchange Reportedly Hacked: $1.4 Billion in ETH and stETH Stolen, ZachXBT Reports

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Massive Crypto Heist Shocks Industry

In a stunning development for the cryptocurrency world, the Bybit crypto exchange has allegedly suffered a massive security breach, with reports indicating that over $1.4 billion worth of Ethereum (ETH) and staked Ethereum (stETH) has been stolen. The news broke on February 21, 2025, when prominent blockchain investigator ZachXBT highlighted suspicious transactions linked to Bybit’s wallets on his Telegram channel.

According to ZachXBT, an on-chain sleuth known for uncovering crypto-related crimes, more than $1.46 billion in suspicious funds flowed out of Bybit. The stolen assets, primarily in mETH and stETH, are reportedly being swapped for ETH on decentralized exchanges (DEXs), raising alarms across the crypto community.

Unconfirmed Details Spark Speculation

While ZachXBT’s initial report pointed to an address (0x47666Fab8bd0Ac7003bce3f5C3585383F09486E2) as the destination of the stolen funds, the exact nature of the breach remains unclear. Posts on X suggest possibilities ranging from a UI spoofing attack altering smart contract logic to a potential key compromise in Bybit’s cold or hot wallets. However, these claims remain unverified as of this writing, pending official confirmation from Bybit or further updates from ZachXBT.

The crypto community on X has been abuzz with reactions, with some users urging Bybit customers to evacuate their funds immediately. One post claimed the exchange’s ETH cold wallet initiated a camouflaged withdrawal transaction, while another speculated that the hack could mark a significant blow to market confidence.

Bybit’s Response Awaited

Bybit, a major player in the cryptocurrency exchange space, has yet to issue an official statement regarding the alleged hack as of 9:22 PM IST on February 21, 2025. The lack of clarity has fueled speculation, with some questioning whether the outflows could be part of an internal wallet restructuring rather than a malicious attack. However, the rapid conversion of stETH to ETH on DEXs, as noted by ZachXBT, suggests otherwise.

The incident follows a troubling trend of crypto exchange vulnerabilities. In 2024 alone, nearly $2.2 billion in crypto funds were stolen industry-wide, according to Chainalysis, with high-profile hacks targeting centralized platforms and DeFi protocols alike.

ZachXBT’s Role in Spotlight

ZachXBT, a pseudonymous investigator renowned for tracing illicit crypto transactions, has once again thrust himself into the spotlight with this report. His past efforts have led to the recovery of millions in stolen funds and the identification of perpetrators in cases like the $243 million Genesis creditor theft in 2024. His early warning on this Bybit incident underscores the critical role of community-driven vigilance in the crypto ecosystem.

As the situation develops, all eyes are on Bybit for an official response and on ZachXBT for any additional findings. The crypto market, already sensitive to security breaches, braces for potential fallout from this reported $1.4 billion loss.

Disclaimer: The content provided reflects the authors personal opinions and is influenced by current market conditions. Conduct thorough research before making any cryptocurrency investments. The author and the publication are not liable for any financial losses you may incur.