In an unprecedented crypto heist, Dubai-based cryptocurrency exchange Bybit announced on Friday that hackers had stolen $1.5 billion worth of digital assets, marking the largest theft in the industry’s history.
Bybit CEO and founder Ben Zhou addressed the situation during an online chat, reassuring users that “your funds are safe.” The exchange quickly launched a refund program, pledging to fully reimburse all affected users.
The breach occurred when attackers exploited security protocols during a transaction, enabling them to transfer approximately 400,000 Ethereum (ETH) to an unidentified address. The compromised assets were stored in an offline “wallet,” typically considered a secure storage method.
Ethereum, the second-largest cryptocurrency by market capitalization, was valued at $2,641.41 on Friday following the hack, reflecting a nearly 4% drop.
Despite the massive theft, Zhou emphasized Bybit’s financial stability, noting the platform manages $20 billion in client assets. He assured that any unrecovered funds would be covered through the company’s treasury or a bridge loan from partners.
While the hackers’ identities remain unknown, the sheer scale of this attack far surpasses the previous record—the $620 million heist of Ethereum and USD Coin from the Ronin Network in 2022, which was attributed to North Korea’s Lazarus Group.
Founded in 2018, Bybit counts billionaire investor and Donald Trump ally Peter Thiel among its early backers, according to Pitchbook.
As the crypto community grapples with the impact of this historic breach, industry experts stress the need for enhanced security measures to safeguard digital assets in an increasingly targeted sector.
