Crypto exchange Bybit recently faced a massive hack, resulting in the withdrawal of over $1.46 billion in Ethereum from its hot wallets, marking a potential record-breaking security breach in the world of cryptocurrency.

Reports reveal that a substantial 401,346 ETH, valued at $1.13 billion, was swiftly transferred from Bybit's hot wallet to an unfamiliar wallet address, leading to immediate liquidation that caused a ripple effect on Ethereum's market value.

Speculations arose regarding a breach at Bybit due to the sizeable amount involved. CEO Ben Zhou acknowledged the incident on social media, stating that the hackers gained control of a specific ETH cold wallet by manipulating the security system. This deceptive tactic misled authorized personnel into unknowingly approving a transfer that ultimately handed control of the wallet to the hacker.

In the aftermath of the breach, Ethereum's market price took a hit, witnessing a sharp decline of over 4% as the stolen ETH was rapidly converted into other assets, impacting various tokens, including Lido Staked Ether (stETH).

Industry experts likened this breach to previous similar attacks, highlighting the sophisticated nature of the hack that allowed the perpetrators to exfiltrate the funds seamlessly. The incident serves as a stark reminder of the constant threat posed by cybercriminals to the crypto landscape.

As investigations continue to unfold, the full extent of the breach and its implications remains unclear. Stay tuned for further updates on this developing story in the crypto sphere.