ByBit Lost 70% of Ethereum Holdings to Hacker, Says CEO
Bybit CEO Ben Zhou confirmed in a Friday livestream that the $1.5 billion hack against his crypto exchange lost the firm the vast majority of its customers’ ETH holdings.
“I believe it was around seventy percent,” Zhou told viewers, when asked how much was lost relative to the company’s ETH assets under management. “We normally keep sixty to seventy prevent in the cold wallets, and I believe this was the amount.”
What Caused The Hack?
The breach, first flagged by on-chain sleuth ZachXBT and other high profile accounts on Friday, saw over 400,000 Ether suspiciously leave Bybit’s cold wallet address, before rapidly being swapped its staked mETH and stETH tokens for ETH.
Security experts at Cyvers told CryptoPotato that the hackers tricked those controlling the keys to Bybit’s cold wallet into signing a malicious transaction which, from the signers’ perspectives, looked honest at the time. Jack Sanford, CEO of Sherlock DeFi, had similar findings, said the transaction would have changed the rules of the multisig wallet’s smart contract to bend to the hackers’ wishes. Exact details on how the signers were fooled remain unknown. “The UI itself could have been compromised, [or] Each of these honest people could have had their actual computer compromised,” wrote Sanford.
ZachXBT, a popular on-chain detective for large crypto hacks, submitted “definitive proof” on Friday that the hack was pulled off by the North Korean “Lazarus Group,” according to Arkham Intelligence. Lazarus are the most notorious hackers in the world, attacking several major crypto exchanges in the past.
“TLDR myself and Josh from CF connected the Bybit hack on-chain to the Phemex hack,” said ZachXBT in response.
Can Bybit Cover The Loss?
Despite the seismic loss, Zhou assured followers in a tweet that all client losses remained covered by the exchange. “All client assets are 1:1 backed—we can cover the loss.” Zhou added during the stream that the exchange is reaching out to its partners in search of a “bridge loan” to support its liquidity needs as it processes “massive withdrawals” in the short term.
“We actually already secured almost 80% of the Ethereum that’s been stolen as a bridge loan, to help us with the liquidity crunch.”
So far, Zhou has resisted the idea of pausing exchange withdrawals. Binance co-founder Changpeng Zhao suggested that Bybit do so as a precaution – even if it spurs more fear in the market – offering his own aid if required.
“1.5 billion is fear enough,” he said. “Better to be safe than sorry now.”
More lightheartedly, BitMEX co-founder Arthur Hayes called on Ethereum co-founder Vitalik Buterin to “roll back the chain” to support Bybit – an action Ethereum leaders coordinated ten years ago in response to the DAO hack.
The post ByBit Lost 70% Of Ethereum Holdings To Hacker, Says CEO appeared first on CryptoPotato.
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Bitget Wallet Adds Aave Integration for Multi-Chain Stablecoin Staking
Bitget Wallet has integrated decentralized lending protocol Aave to allow users to stake USDT and USDC across five blockchain networks while retaining self-custody of assets.
Bitget Wallet now supports staking of USDT and USDC on Ethereum, Base, Polygon, Arbitrum, and Optimism through Aave, enabling users to earn real-time yields without locking funds. According to the announcement shared with Bitcoin.com News, the integration sources annual percentage yields (APYs) directly from onchain data, displayed via a dashboard for tracking earnings and withdrawals.
A limited-time promotion offers participants a share of $7,000 in BGB tokens for staking at least $10 in USDT or USDC between Feb. 18 and March 4 (UTC+8). Bitget explained that the event aims to attract new users to decentralized finance (DeFi) staking. The wallet’s security protocols include a $600 million Protection Fund and audited smart contracts.
Bitget stressed that users maintain full control of staked assets, aligning with Bitget Wallet’s non-custodial model. Bitget Wallet also supports staking for Ethereum, Solana, and TON, among other networks, as part of its broader multi-chain services. The Aave integration eliminates complexities like manual liquidity management, according to the company.
“Our goal is to make DeFi accessible, secure, and rewarding while empowering users with full ownership of their funds,” Alvin Kan, COO of Bitget Wallet told our newsdesk. “By expanding staking options and integrating with Aave, we’re offering a decentralized financial experience that caters to both new and experienced users.”
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Tether Introduces TradeFi to Revolutionize Global Trade Through Blockchain
Tether has unveiled TradeFi, a new financial service aimed at optimizing global trade by offering innovative funding solutions. The announcement was made on February 19 by the company’s CEO, Paolo Ardoino, via X. According to Ardoino, TradeFi is designed to address the financial demands of modern commerce by streamlining cross-border transactions and improving overall efficiency.
This latest initiative expands Tether’s portfolio, which already includes stablecoins, asset tokenization , and wallet development tools. TradeFi is expected to facilitate funding for international trade, particularly in key commodities like crude oil and copper, while utilizing USDT for seamless settlements. The goal is to lower transaction costs and enhance financial inclusivity across different industries and markets.
Tether’s website describes the initiative as a blockchain-backed solution that simplifies trade flows, reduces costs, and fosters financial accessibility across borders. The introduction of TradeFi follows Tether’s involvement in its first crude oil trade last November, when the company financed a $45 million deal covering 670,000 barrels of oil in the Middle East. While the specific companies involved in this transaction were not disclosed, Ardoino highlighted the deal as an initial step in a broader plan to support additional commodities and industries.
The launch of TradeFi aligns with Tether’s broader strategy of diversifying its business beyond stablecoins. Over the past year, the company has strategically invested in multiple industries, signaling a shift from its role as a stablecoin issuer to a significant player in sectors such as artificial intelligence, agriculture, and Bitcoin mining.
Tether has also made notable investments, including backing Juventus, the well-known Italian football club, and expressing interest in acquiring a 51% stake in Adecoagro SA (AGRO), a NASDAQ-listed agribusiness firm . A Tether spokesperson informed on media that these ventures are part of the company’s long-term plan to expand its reach into tangible, high-value industries beyond digital assets.
Despite this diversification, Tether maintains its dominance in the stablecoin market. Its flagship stablecoin, USDT, continues to lead the sector with a market capitalization exceeding $140 billion, accounting for approximately 70% of the industry’s total market share.
MIND of Pepe is an innovative cryptocurrency project that merges meme culture with advanced artificial intelligence technology. At the core of this initiative is an adaptive AI agent designed to collect and analyze information about meme coins while engaging with the community. This dynamic system allows the AI to enhance its capabilities progressively, ensuring that the project remains both interactive and technologically cutting-edge. The fusion of AI-driven innovation with entertainment elements introduces a fresh approach to the digital asset industry.
The project operates on its native cryptocurrency, $MIND, which serves as the backbone of its ecosystem. Token holders benefit from exclusive market insights, participation in community-driven initiatives, and various other advantages. MIND of Pepe has allocated a total supply of 100,000,101,001 tokens, strategically distributing them among key areas such as presale, liquidity, development, marketing, and staking rewards. This structured tokenomics model is intended to promote long-term project stability and growth.
Security and transparency are fundamental to the project’s infrastructure. To reinforce investor confidence, the smart contracts governing MIND of Pepe have undergone a comprehensive audit conducted by Coinsult, a trusted blockchain security firm. The publicly available audit findings further demonstrate the project’s commitment to building a secure and transparent ecosystem, helping to establish trust among both community members and potential investors.
By leveraging artificial intelligence within the meme coin sector, MIND of Pepe aims to reshape the cryptocurrency landscape. Its AI-powered system not only supports continuous technological advancements but also fosters an engaging user experience. The dual emphasis on innovation and entertainment sets this project apart, positioning it as a potential leader in the evolving digital asset space.
Those eager to learn more or participate in the presale can visit the official MIND of Pepe website . The project stands as a forward-looking example of how AI integration and meme culture can intersect to create new opportunities within the crypto industry.
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Lazarus hacks Bybit, likely accessed multi-sig signers' devices in $1.5B $ETH theft
North Korea's hacking group, Lazarus, orchestrated the largest-ever attack on a centralized crypto exchange by stealing over $1.5 billion in ETH and derivative tokens from Bybit on Feb. 21, as reported by The Block. According to Bybit's post-mortem investigation, the hackers manipulated the smart contract's logic and the signing interface to take control of the ETH cold wallet, resulting in the transfer of over 400,000 ETH and stETH to an unknown address. Following the theft, the funds were dispersed across multiple wallets in a typical Lazarus strategy.
Bybit suspects a vulnerability in Safe{Wallet}, a self-custodial multi-signature wallet, and is focusing its investigation on this potential flaw. Safe confirmed its cooperation with Bybit's ongoing probe and has temporarily disabled some functionalities of Safe as a precaution. Security experts suggest that Lazarus gained access to the devices of the cold wallet's multi-sig signers through various methods such as phishing, malware infections or a faulty Chrome plugin. This access allowed them to trick the signers into authorizing a malicious transaction by presenting a deceptive interface.