Dubai-based cryptocurrency exchange Bybit confirmed on Friday that hackers had stolen $1.5 billion worth of digital assets, marking the largest cryptocurrency theft in history. CEO and founder Ben Zhou addressed the breach during an online chat, reassuring users that their funds remained safe.
“We’ve launched a refund program for users affected by today’s hack. Bybit is committed to protecting our community, and we will fully reimburse all impacted users,” the company stated on X.
Exploiting Security Protocols
Bybit reported that attackers exploited security protocols during a transaction, allowing them to transfer assets to an unidentified address. The breach compromised an offline storage wallet containing Ethereum, leading to the theft of 400,000 ETH.
Ethereum, the world’s second-largest cryptocurrency by market value after Bitcoin, was trading at $2,641.41 on Friday following the hack, reflecting a near four percent decline.
Pledge to Cover Losses
Zhou emphasized that Bybit holds $20 billion in client assets and assured users that any unrecovered funds would be covered through the company’s treasury or a bridge loan from partners.
The identity of the hackers remains unknown. However, the magnitude of the attack surpasses the previous record—the $620 million theft from the Ronin Network in 2022, which was allegedly orchestrated by North Korea’s Lazarus group.
A High-Profile Exchange
Founded in 2018, Bybit has established itself as a major player in the cryptocurrency industry. The exchange has attracted notable investors, including Peter Thiel, a prominent supporter of former U.S. President Donald Trump, according to Pitchbook.
As the investigation into the attack continues, the breach raises fresh concerns about security within the crypto industry, underscoring the vulnerabilities even among leading exchanges.
