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OVERVIEW

Largest Crypto Hack In History: $1.4B Gone 😱 

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total market and altcoin market cap charts:

NEWS
Digital Armageddon: $1.4B Snatched 😵 

It’s Friday, so it’s a regular ol’ shit show in crypto again. Bitcoin returned to the $99,000 level and people were excited. Then 10:20 am EST rolls in and this happened:

A little after 10:00 am EST, rumors of a hack against Bybit exploded across crypto, with on-chain analytics firms sounding an alarm:

Then confirmation from Bybit occured:

Bybit CEO Ben Zhou addressed concerns following the exchange's massive $1.4 billion hack, confirming that all client withdrawals will be processed, even if under review. Zhou also said during a livestream that Bybit can withstand a bankrun.

Proof-Of-Reserves: 1:1 True Or False? 🤔 

Now, I don’t take the CEO’s word for it, so I did look through Bybit’s latest Proof-of-Reserve audit (independently done by Hacken). Bybit has this fancy-shmancy visual tool, but I went through the report itself.

And you shouldn’t take my word for it either: read it for yourself here.

If the audit checks out, then Bybit’s CEO isn’t bluffing about being slightly over-collateralized with the 1:1 ratio. All told, the value of Bybit’s wallet addresses is roughly $11.78ish billlion.

So, ya, they can weather a $1.4 billion loss.

Investigations and Next Steps 🔍️ 

Instead of buying Ethereum to cover the losses, Bybit secured a bridge loan from partners, covering nearly 80% of the stolen ETH to ease its liquidity crunch. It also means Bybit isn’t selling a metric crap ton of other coins to cover the loss.

Bybit assures everyone that the rest of their cold wallets are locked down tight. Client funds remain safe, so no meltdown required. Investigations are moving along with big-name blockchain analysis teams, and Bybit promises to dish out updates when they have ’em.

Moral of the story: always, always verify the transaction details on your hardware wallet’s screen, because the front-end can play dirty tricks. 🪄 

If you want to watch what’s happening with the hacker’s wallet live, Arkham Intelligence already has it setup to monitor.

We’ll keep you updated as this story develops. 📰 

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