Dubai-based cryptocurrency exchange Bybit has confirmed a massive security breach resulting in the theft of approximately $1.5 billion worth of digital currency, primarily Ethereum.
The incident, potentially the largest cryptocurrency theft in history, has sent shockwaves through the digital asset market.
Founder Ben Zhou assured users that their funds were “safe” and that the company would reimburse any losses. Bybit, which holds an estimated $20 billion in assets, stated that the stolen funds could be covered internally or through loans from partners.
Zhou confirmed on social media platform X that Bybit is “solvent” even if the stolen assets aren’t recovered, and client funds are “1 to 1 backed”.
The hackers reportedly exploited vulnerabilities in Bybit’s security systems, transferring the stolen Ethereum to an unidentified wallet address. The theft triggered a 4% drop in Ethereum’s price on Friday, highlighting the immediate market impact of such large-scale breaches.
The scale of the Bybit hack surpasses the previous record of $620 million stolen from the Ronin Network in 2022. Bybit, founded in 2018, boasts over 60 million users globally and offers trading in a wide range of cryptocurrencies.
The company has reported the incident to law enforcement and is actively working to identify the perpetrators. This incident underscores the persistent security challenges facing the cryptocurrency industry, despite growing mainstream adoption.
It adds to concerns after the recent market activity regarding specific, hyped digital coins, emphasizing the need for improved security measures. This event follows other notable heists in the crypto world, like $350m theft at crypto exchange Mt Gox and $41m worth of Bitcoin from the Binance exchange in 2019.
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