Hackers have stolen $1.5 billion (£1.1 billion) worth of cryptocurrency from Bybit, potentially making it the largest crypto theft ever recorded. The Dubai-based exchange assured users that their funds were secure and promised to reimburse anyone affected by the breach.
According to Bybit, the hackers targeted its Ethereum wallet, draining funds from the platform. Ethereum, the second most valuable cryptocurrency after Bitcoin, saw its price drop by approximately 4% following the incident, bringing its value to $2,641.41 (£2,090) per coin.
Ben Zhou, Bybit’s founder, stated that the company could cover the loss either through its own reserves or by securing loans from partners. Bybit currently holds $20 billion (£15 billion) in assets and serves over 60 million users worldwide. Zhou emphasized that client funds remain fully backed on a one-to-one basis, even if the stolen amount is not recovered.
The firm revealed that the hackers exploited security vulnerabilities to move the stolen assets to an unidentified wallet. Following the attack, Bybit reported the incident to authorities and is working diligently to trace those responsible.
This theft surpasses the previous record set in 2022, when hackers stole $620 million (£490 million) worth of Ethereum and USD Coin from the Ronin Network. The incident has once again raised concerns about security within the cryptocurrency industry.
Cryptocurrencies have long divided opinions, with critics arguing that their value is purely speculative and prone to manipulation. These concerns were reignited after former U.S. President Donald Trump introduced his own digital coin, TRUMP, despite admitting limited knowledge about crypto. Initially gaining significant value after its launch, the coin has since seen a sharp decline.
The attack on Bybit echoes past high-profile breaches, such as the 2014 collapse of Mt. Gox, which lost $350 million (£210 million) to hackers, and the 2019 theft of $41 million in Bitcoin from Binance. This latest incident underscores the ongoing challenges in securing digital assets despite efforts to rebuild trust in the market.