In the aftermath of a significant security breach on February 21, 2025, the hacker responsible for stealing approximately 514,000 Ether (ETH) from cryptocurrency exchange Bybit has begun relocating the illicit funds. Recent reports indicate that over 400,000 ETH, valued at more than $1 billion, have been transferred from the original compromised address to multiple new wallets. Blockchain monitoring firm EmberCN observed that the stolen funds were dispersed across 49 different addresses, each receiving 10,000 ETH.
Bybit’s CEO, Ben Zhou, confirmed the breach, noting that the Ethereum coins were taken from the exchange’s offline “cold” wallet, which is typically considered more secure than online “hot” wallets. Zhou assured users that the exchange remains solvent and that all customer assets are safe and backed 1:1.
In response to the incident, fellow cryptocurrency exchanges Binance and Bitget have transferred over 50,000 ETH to Bybit’s cold wallets to provide emergency liquidity support. Notably, Bitget’s contribution amounted to a quarter of its total ETH holdings.
This event underscores the persistent security challenges within the cryptocurrency industry, which has witnessed a series of high-profile hacks in recent years. The movement of such substantial amounts of stolen funds highlights the ongoing efforts by malicious actors to obfuscate the origins and destinations of illicit gains.