Ethereum News: CZ Warns of Multi-Sig Cold Storage Hack Affecting Crypto Exchanges, Bybit Loses Over $1.4 Billion

In a recent development that has shaken the cryptocurrency world, Binance co-founder Changpeng Zhao (CZ) has issued a warning about a new hacking pattern targeting multi-sig cold storage solutions used by crypto exchanges. This warning comes on the heels of a major hack on Bybit, where hackers stole over $1.4 billion worth of crypto assets.

CZ Warns of Multi-Sig Cold Storage Hack Targeting Crypto Exchanges

Binance co-founder and former CEO Changpeng Zhao (CZ) has warned of new hack patterns targeting multi-sig cold storage solutions in crypto exchanges. Hackers have reportedly penetrated the systems of multiple exchanges, such as Bybit, stealing large amounts of crypto. The Bybit hack saw the loss of over $1.4 billion in liquid-staked Ether (stETH), Mantle Staked ETH (mETH), and other ERC-20 tokens, which has been tied to the North Korean hacker organization, Lazarus Group. CZ noted that Lazarus Group is growing in sophistication.

Ethereum's Market Shift and Price Implications

Ethereum’s exchange netflows on derivative exchanges fell below -400,000 ETH, coinciding with Bitcoin miner underpayment – a sign of market stress. These developments hinted at a significant ETH withdrawal from exchanges, historically linked to a fall in selling pressure and a hike in bullish sentiment. The 1-hour ETH/USD chart on Binance showed ETH trading at around $2,685.55, following a recovery over the last 72 hours. However, the Bybit hack could still impact the altcoin’s value.

Ethereum Whales Accumulate Despite Bybit Hack

Over 140,000 ETH was accumulated by whales in the last 24 hours, signaling strong buying pressure. A major hack on Bybit saw over 405,000 ETH, valued at approximately $1.1 billion, drained from the exchange. This incident has triggered speculation about potential sell-offs and buybacks, making Ethereum’s near-term trajectory uncertain. However, large Ethereum holders continue to accumulate ETH.

Bybit Hacked for $1.4 Billion, Industry Manages Well

The cryptocurrency exchange Bybit lost more than $1.4 billion in ETH and stETH in what many are calling the biggest crypto hack of all time. An investigation is ongoing, with suspicions pointing towards North Korea’s Lazarus group. There was initial panic in the markets as Bybit users rushed to withdraw their funds, but the industry has managed this episode fairly well, highlighting the maturity of the digital asset space.

Ethereum Price Potential and ByBit Hack Impact

Ethereum appeared poised for a bullish breakout but suffered a setback due to a $1.5 billion hack on ByBit exchange. Despite the drop, on-chain data suggests Ethereum could still reach $4,000 by the end of this cycle. Analyst Crypto Sunmoon identified a bullish divergence on CryptoQuant that offers insight into Ethereum's near-future price performance.

Ethereum Taker Buy Sell Ratio Shows Bullish Divergence

Ethereum is trading below the $2,700 mark after days of struggling to reclaim it. Bulls have been unable to gain momentum, and selling pressure has kept ETH below key resistance levels. Recently, Bybit, a top crypto exchange, was hacked, leading to a loss of $1.4 billion in ETH and triggering panic selling. However, CryptoQuant data suggests a potential turnaround, revealing a bullish divergence in Ethereum taker buying, a key indicator of increasing buying pressure despite price declines. Historically, this type of divergence has signaled the start of recovery rallies.