40,000 ETH on the Move: Bitget Backs Bybit After Major Security Breach

• Bybit’s $600M hack happened but the exchange remains solvent with strong support from Binance and Bitget ensuring stability
• Crypto unity in crisis is evident as major exchanges quickly backed Bybit showing a shift toward industry-wide resilience and trust
• Evolving cyber threats are exposing wallet vulnerabilities pushing exchanges to strengthen security and prevent future breaches

Gracy Chen, Managing Director at Bitget, confirmed that Bitget transferred 40,000 ETH to Bybit. She reassured users that the funds were Bitget’s own and that the exchange maintains a reserve ratio greater than 1:1. This move underscores Bitget’s confidence in Bybit, despite the massive loss.

Bybit’s Response and Industry Reactions

Bybit CEO Ben Zhou addressed the situation, explaining that the hack occurred during a routine cold-to-warm wallet transfer. The attacker manipulated the signing interface, disguising the correct address while modifying the smart contract logic. As a result, they gained access to Bybit’s cold wallet and siphoned funds to an undisclosed address.

Despite the loss, Zhou reassured users that Bybit remains solvent, with over $20 billion in assets under management. The exchange swiftly processed more than 350,000 withdrawal requests, ensuring all transactions returned to normal. Binance and Bitget also deposited over 50,000 ETH into Bybit’s cold wallets, showcasing industry-wide trust in Bybit’s stability.

Stolen Funds on the Move

Blockchain analytics firm Arkham Intelligence reported that the stolen funds had started moving to new wallets. The hacker has begun selling assets through unidentified addresses, further complicating recovery efforts. However, Bybit is working with forensic experts to track and potentially recover the stolen ETH.

The rapid response from major exchanges highlights a shift in industry dynamics. Unlike the FTX collapse, where Binance hesitated to provide support, the immediate backing of Bybit signals strong industry confidence.

What This Means for Crypto Security

This attack serves as a crucial reminder of the vulnerabilities in crypto exchanges. The ability to manipulate wallet transfer processes demonstrates the evolving complexity of cyber threats. Consequently, exchanges must bolster security protocols to prevent similar breaches.

Moreover, Bitget and Binance’s answer points to a new trend of cross-exchange cooperation. This event might establish a standard for more robust security protocols throughout the cryptocurrency sector. Bybit is still in business and dedicated to protecting all user valuables.