According to the latest reports, crypto exchange Bybit suffered a major hack, and over $1.46 billion in Ethereum was withdrawn from its hot wallets. 

This could potentially be the biggest security breach in crypto history. 

Bybit Hack: Everything We Know So Far

On-chain data shows that a staggering 401,346 ETH (valued at $1.13 billion) was reportedly transferred from Bybit’s hot wallet to an unknown wallet address. The amount is now being liquidated, which also immediately impacted Ethereum’s market price. 

This large transfer immediately sparked concerns that Bybit had suffered a breach, especially considering the significant value of the assets involved.

Bybit CEO Ben Zhou confirmed the reports on social media.  

“Hacker took control of the specific ETH cold wallet we signed and transferred all ETH in the cold wallet to this unidentified address. Please rest assured that all other cold wallets are secure. All withdraws are normal,” Zhou wrote on X (formerly Twitter).

According to his statement, Bybit’s Ethereum cold wallet was hacked because the attackers tricked their security system. The wallet signers (authorized people) saw a fake user interface that showed the correct address, making them believe they were approving a normal transfer. 

However, in reality, they were unknowingly signing a change to the smart contract logic, which gave the hacker control over the wallet. As a result, all the ETH in that cold wallet was transferred to an unknown address. 

“The biggest hack ever by far. Very similar to the WazirX $235 million access control attack,” Deddy Lavid, CEO of blockchain security firm Cyvers, told BeInCrypto.

Meanwhile, the hack immediately impacted Ethereum’s market price. As large volumes of the stolen ETH were liquidated, the altcoin fell over 4% in a straight line.

According to Arkham data, nearly $200 million worth of Lido Staked Ether (stETH) were sold within the first 30 minutes. Security experts have told BeInCrypto that this attack was almost identical to last year’s WazirX and Radiant Capital hack.

“Two minutes before the outflow transactions, the hacker re-implemented their Safe multisig wallet to delegate calls to the hacker’s malicious contract. This was likely caused by blind signing while attempting to execute a legitimate transaction. From that moment, the hackers had full control over the wallet and no longer needed additional signatures. This attack is very similar to those on WazirX and Radiant Capital,” Meir Dolev, Co-Founder and CTO of Cyvers, told BeInCrypto. 

It appears that Bybit fell victim to the same malicious techniques that caused the biggest hacks of 2024. 

This is an ongoing story. More information will be provided as the investigation unfolds. 

Shiba Inu has faced significant challenges in recent months, failing to break free from its ongoing downtrend. Despite the altcoin’s struggles, recent investor activity indicates a potential shift. 

Increased capital inflows into Shiba Inu are setting the stage for a potential reversal of its current downtrend. If these trends continue, Shiba Inu could soon see a positive price rally.

Shiba Inu Is Preventing A Decline

The exponential moving averages (EMAs) for Shiba Inu are showing resilience, with no signs of a bearish crossover despite the recent price decline. This is a key indicator that the broader market’s bullish sentiment is lending support to SHIB. Traders are closely watching this as a potential signal for a market reversal, indicating that the altcoin may be poised for a shift.

The lack of a bearish crossover between the EMAs suggests that momentum is not as weak as it may appear. With support from the broader market’s bullish cues, Shiba Inu could avoid further downside and instead trigger a reversal. This scenario would help change the trend, offering a window for potential gains in the near future.

Shiba Inu’s macro momentum is showing signs of recovery, driven by a significant increase in capital inflows. The Chaikin Money Flow (CMF) indicator has been rising steadily over the past week, signaling that investor optimism is returning. This trend reflects a growing belief in Shiba Inu’s potential for recovery as more funds flow into the asset.

These increased inflows suggest that Shiba Inu is gaining traction among investors. As the altcoin attracts more buyers, it could find the necessary momentum to reverse its downtrend and regain lost ground. Such positive market behavior is crucial in establishing a solid foundation for the upcoming price movement.

SHIB Price Breakout Likely

Shiba Inu’s price is currently at $0.00001559, on the verge of breaking out of the downtrend that has persisted since December 2024. This potential breakout hinges on holding the current price levels and breaking key resistance zones. Successfully breaking above $0.00001676 would trigger a price rally toward $0.00001961.

If Shiba Inu is able to maintain this upward momentum, it could flip $0.00001676 into support and continue to move toward $0.00002093. This would mark a successful breakout, giving SHIB investors hope for a more significant price recovery as it challenges new price levels.

However, failure to break above $0.00001676 could result in a pullback, bringing Shiba Inu down to its support at $0.00001462. Losing this support level would open the door to further declines, potentially driving the price to $0.00001271 and invalidating the current bullish outlook.