As cryptocurrency exchanges increasingly become targets for hackers, the latest incident involving ByBit marks a new low in digital security. The exchange disclosed that it suffered a massive theft of $1.4 billion worth of Ethereum, marking one of the largest crypto heists in history, as noted by the cryptocurrency tracing firm Elliptic. ByBit’s CEO, Ben Zhou, described how the attackers used what he referred to as a "musked transaction" to deceive the platform into authenticating a code alteration linked to a wallet holding its Ethereum stockpile. Zhou assured users that other cold wallets remain secure and stated that operations had returned to normal, implying that the exchange could cover the losses and that user funds were safe.
This theft eclipses past high-profile incidents, such as the Mt. Gox and FTX hacks, which resulted in losses of hundreds of millions of dollars at the time of the crimes. Notably, even the infamous Bitfinex breach in 2016, which originally involved nearly $4.5 billion, saw only a fraction of that amount in value during the theft. ByBit’s loss is significant amidst a broader landscape of cryptocurrency crime, which totaled $2.2 billion in 2024.
In other related security concerns, Apple has recently faced backlash for disabling end-to-end encryption for iCloud in the UK, following a government demand for access to this data. This decision has raised privacy alarms among advocates, who fear that it sets a dangerous precedent for user security against future government surveillance efforts.
Additionally, two stalkerware applications, Cocospy and Spyic, were exposed for leaking substantial amounts of user data online due to significant security flaws. This included sensitive information such as messages, call logs, and even personal photos, putting millions of victims at risk and illuminating the threat posed by poorly secured surveillance software.
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