According to the initial analyses conducted by the blockchain analytics company Nansen, the total amount of the attack against Bybit is equal to $1.44 billion.
The cryptocurrency sector has been shaken by an unprecedented cyber attack against Bybit, one of the largest exchanges in the world.
The initial investigations have revealed the movement of the stolen funds, which include:
- 401.347 ETH (~$1.12 billion)
- 90.376 stETH (~$253.16 million)
- 15,000 cmETH (~$44.13 million)
- 8,000 mETH (~$23 million)
Funds Analysis: the analysis of the attack by Bybit
After the theft, the funds were initially moved to a main wallet:
Main Wallet: 0x47666fab8bd0ac7003bce3f5c3585383f09486e2
From this address, the hackers quickly distributed the funds to over 40 secondary wallets, using different strategies to complicate the tracking.
Some of the key wallets used by the attackers:
- 0xa4b2fd68593b6f34e51cb9edb66e71c1b4ab449e
- 0x36ed3c0213565530c35115d93a80f9c04d94e4cb
- 0x1542368a03ad1f03d96D51B414f4738961Cf4443
Analysis compared with other attacks on crypto exchanges
The hack of Bybit adds to the list of significant attacks that have hit crypto exchanges over the years. Similar events have often had direct repercussions on the market and on investor confidence.
- Mt. Gox Hack (Feb 2014): Bitcoin lost 50% of its value, dropping from $600 to $300 in a few months.
- Bitfinex Hack (Aug 2016): Bitcoin experienced a temporary drop, but it quickly recovered.
- NiceHash Hack (Dec 2017): Occurred during the market peak, it contributed to the subsequent downtrend.
- Coincheck Hack (Jan 2018): It accelerated the descent of Bitcoin to $3,000 by the end of the year.
- FTX Collapse (Nov 2022): Marked the bottom of the crypto market, with a recovery only in 2023.
Conversion and Distribution of Cryptocurrencies
One of the critical steps was the conversion of the stolen assets. The attackers converted all stETH, cmETH, and mETH to ETH before distributing the funds in tranches of $27 million across more than 10 different wallets.
Wallet used for conversion and distribution:
- Conversion wallet: 0xa4b2fd6…449e
- Wallet with large outgoing transactions: 0x47666f…86e2
- Redistribution wallet: 0xdd9007…5f92
Currently, many of the funds are still held in various wallets, suggesting that the attackers might be waiting for the right moment to move them further.
- Wallet with funds still present: 0xd5b58c…c489
Impact on the Cryptocurrency Market
The hack had significant repercussions on the markets, with increased volatility in the price of Ethereum and other cryptocurrencies.
- ETH experienced a sudden drop after 15:00 CET, with a loss of 4% in just 45 minutes between 16:15 and 17:00 CET.
- Many cryptocurrencies have shown signs of a rebound, but prices remain lower compared to pre-attack levels.
- Increased uncertainty in the market as investors assess the long-term impact of the theft.
How to protect your funds from hacker attacks
With the increase in attacks on exchanges, it is crucial to adopt adequate security measures:
- Use non-custodial wallets to store funds for the long term.
- Activate two-factor authentication (2FA) on exchange accounts.
- Avoid keeping large amounts of cryptocurrencies on exchanges.
- Monitor transactions and update security measures periodically.
An Ongoing Investigation
While the authorities and blockchain forensics companies continue to monitor the situation, the episode once again raises the issue of security in cryptocurrency exchanges. The tracking of funds and coordination with the authorities will be crucial in attempting to recover some of the stolen amounts.