Over $1.4 billion worth of ETH-related tokens hacked on Bybit exchange!

Another bad news happened in the crypto market yesterday. Yesterday, centralized crypto exchange Bybit was hacked. Ethereum and Ethereum-related currencies were hacked for about $1.4 billion from this centralized exchange yesterday. Such incident is really sad to come in present time and the amount of money hacked from Ethereum which was about 70% of the company's Ethereum reserves.

The market's first reaction was to sell cryptocurrencies held to stay in stablecoins while risks to other coins were also possible. However, after the incident yesterday, various rumors were spread after the exchange's CEO and social media manager revealed the reality of what happened. However the hack that happened yesterday was limited to Ethereum wallets only. Basically the multi-sig cold wallet was targeted by a group of people while transferring funds to the hot wallet of this exchange and incidents like hacks took place.

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In the current situation such news is very harmful for the market. As the market moved much lower after this incident. Cryptocurrencies tend to lose around 1% to 10% in a day due to the devastating amount of hacked money. But incidents like any hack are really sad because it affects many investors just like it affects the market. The stolen money was the amount of profit Bybit makes in a whole year. However since yesterday's incident there has been an increase in withdrawal demand from many users at the same time and the withdrawal is actively underway albeit slower than usual due to so much demand at the same time.

However, the positive news is that other centralized exchanges have announced that they are following the case closely to prevent the hackers from selling the stolen funds when other exchanges use them. However, Bybit is going to use some bridges to buy some OTC Ethereum in order to avoid the market volatility that is currently occurring. This is a stress test for the market. If ByBit can manage this process smoothly then we can expect more courage and investors with more faith in the cryptocurrency they want to put in their portfolio.

Although currently the market is very volatile due to this situation. However, the exchange authorities may release some of the instability if they handle the case anew and also buy Ethereum to cover up the company's theft of user funds. The more Ethereum the company buys, the greener the market.