Ethereum faced steep losses Friday after a security breach at Bybit drained an estimated $1.4 billion from the exchange.
Ethereum Faces 2.6K Low Following the Hack—Can Recovery Hold?
Bybit’s CEO confirmed on Feb. 21, 2025, that the platform lost a large portion of its crypto reserves in the attack, which targeted ETH, mETH and stETH holdings. The incident sent Ethereum’s value tumbling, with prices dropping sharply in its wake.
Ether (ETH) plunged to $2,675 immediately after the breach but later rebounded to $2,763. Before the hack was disclosed, ETH had traded at $2,837. Derivatives markets mirrored the chaos: Within one hour, $48 million in ETH-linked positions were liquidated, including more than $25 million from short contracts.
An additional $109 million in ETH derivatives positions evaporated over the next 24 hours. The fallout rippled beyond Ethereum, hitting assets like bitcoin and solana. On HTX’s BTC derivatives platform, a single trader absorbed a $45.8 million loss. Markets now appear to stabilize as investors digest news of the breach.
The breach at Bybit highlights persistent vulnerabilities in centralized exchanges, reviving concerns over custodial risks. Though markets show early signs of stabilization, the spillover into major assets illustrates the crypto sector’s interconnected exposure.
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