*Cryptocurrency Exchange Bybit Loses $1.4 Billion in Massive Ether Wallet Hack* Cryptocurrency exchange Bybit has been hacked, resulting in a staggering loss of $1.4 billion in ether. The hack, which targeted one of Bybit's ether cold wallets, was confirmed by CEO Ben Zhou, who reassured customers that all client funds are safe and that the exchange's operations continue as usual. *How the Hack Happened* The hackers used a sophisticated phishing attack to manipulate Bybit's team into authorizing a malicious transaction. They created a fake user interface that mimicked the legitimate wallet management platform, Safe, making it appear as though the transaction was authentic. Once the transaction was approved, the hackers altered the smart contract logic of the targeted cold wallet, granting them control and allowing them to drain the wallet of its ether holdings. *Aftermath and Investigation* Bybit's security team, along with forensic experts, is currently investigating the incident. The stolen ether is being split between 39 different addresses, likely in an attempt to obscure the funds and avoid detection. On-chain intelligence firm Arkham has launched a $50,000 bounty to identify the hacker. *Impact on the Crypto Market* The hack has triggered a wave of liquidations, particularly in Ethereum futures markets, with $76 million wiped out in just four hours. Ethereum's price has dropped 3% in the past hour, trading at $2,727. Despite the significant loss, Bybit remains solvent, and CEO Ben Zhou has assured customers that all client assets are 1:1 backed, and the exchange can cover the loss.