Crypto exchange Bybit says a hacker took control of one of its cold Ethereum wallets, resulting in what analysts estimate was the loss of ~$1.5B worth of tokens
Crypto exchange Bybit says a hacker took control of one of its cold Ethereum wallets, resulting in what analysts estimate was the loss of ~$1.5B worth of tokens
More like bye-bit, am I right??
Angry upvote you horrible genius.
They'll just roll back the blockchain. Ethereum is a centrally controlled cryptocurrency, though its fans claim otherwise. It's been rolled back before.
This is either a person who hasn't followed ETH since 2016 or is intentionally spreading misinformation.
It HAS been rolled back once, when the blockchain was in its infancy. But to say that it is still "centrally controlled" suggests having no idea what has happened in the 9 years since.
I'm so glad I have no crypto of any kind. It's the wild west with no savings insurance, so once it's gone, it's gone.
How does one get ones hands on a cold wallet?
My speculations:
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"insecure from the start" - as in , the wallet was never that "cold"
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with that amount of money, it's easy to imagine an "insider threat"
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the hackers could have gotten lucky and struck right when the company was doing legitimate operations on the wallet
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but probably it's a towering mountain of incompetence, composed of the elements above and more
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It's a common misconception that a "cold wallet" is offline. It's still on the blockchain like any other wallet, it's just the keys that aren't on any network-connected computer.
It appears that in this case hackers managed to trick Bybit employees into entering the keys into a fake UI that gave the hackers access to them.
That’s room temperature wallet. It was used while claiming asset unused.
It is not cold storage anymore.
Tricked or “tricked”.
Do I understand this correctly, then, that this was some sort of MITM attack where valid requests to the multisig parties were replaced by malicious code while still appearing to be valid to the signers? That must be an inside job.
And this is the first time I have heard the word "musked" in this context.....
What I don't quite understand is how there is 1.5 billion in a single wallet. Or how are these things structured?
This article puts their total assets under management at $15.7b, which are held in different cryptocurrencies with ethereum at just above $5b.
So I am wondering how they have more than 1/6 of their Ethereum in a single wallet or were these multiple that were connected and got compromised through the same vulnerability? How expensive is it to have more individual wallets? Would it not be feasible to have it split in something like $100m chunks? Or any other more moderate size.
Making more wallets would cost nothing more than a few hundred bytes of storage each for the keys. I have no idea why they wouldn't have split their funds into evenly sized wallets of, say, $1M each.
I recommend gloves.
Well, either it wasn't as offline as they all thought, or someone pulled off an epic inside job.
Social engineering, they convinced multiple key holders to sign a transaction.
The weakest part of any secure system.
With steely determination
The money is not gone, is just that someone else has it.
ELI5 why we cannot "rollback" Ethereum
The money of the future ladies and gentlemen.
Even regular banks can be hacked, this isn't just a crypto issue. Same group that hacked byebit also is responsible for the below:
Seriously, who calls their online banking type site bye bit?
Having said that, I'll just go ahead and assume their security was barely existent, as per usual. I wonder if their CTO was actually s music teacher too.
This is the same hacker group that performed the Bangladesh Bank robbery, that attack the almost stole 1 billion, the only reason they got flagged was a typo. They did manage to steal 81 million though. Byebit does seem to have bad security though compared to Bangladesh bank.
lol good
I gotta get in on this hacking gig. Anyone know if any hacker groups are hiring?
/s for CSIS
Oh no!
how is $1.5 billion in worth calculated because no way bitcoin tokens are worth more than $20.
I'm not sure I understand the question... Do you think the market value of these coins is made up (as in not directly related to demand), and you can't actually go onto an exchange and trade it for actual USD? Because of course you can.
1 Bitcoin (not a token) is currently worth over $95,000
They're worth what you can sell them for. The US dollars they're priced in don't exactly inspire confidence these days, either.
