Bybit Suffers Historic $1.5 Billion Crypto Theft, Assures Users of Fund Safety

New York, United States – In a shocking revelation on Friday, Dubai-based cryptocurrency exchange Bybit disclosed that hackers have stolen a staggering $1.5 billion worth of digital assets, marking what is now recognized as the largest theft in the history of the cryptocurrency industry.

Bybit’s CEO and founder, Ben Zhou, addressed the incident in an online chat, assuring users that their funds are secure. “Your funds are safe,” he stated, aiming to bolster confidence among the exchange’s users following the unprecedented breach.

In a post on social media platform X, Bybit announced the initiation of a refund program for users who were affected by the hack. The company emphasized its commitment to protecting its community and pledged to fully reimburse all impacted users.

Details of the Hack

According to Bybit, the attackers exploited vulnerabilities in their security protocols during a specific transaction, allowing them to transfer large quantities of assets to an undisclosed location. This breach compromised an offline "wallet" that previously stored a significant amount of Ethereum (ETH). On Friday morning, the hackers successfully stole 400,000 ETH amid the chaos.

Ethereum, known as the second-largest cryptocurrency by market capitalization following Bitcoin, saw a considerable dip in its value on the day of the theft—a decrease of nearly four percent, bringing its price down to approximately $2,641.41 after the incident.

Zhou further reassured stakeholders that Bybit holds an estimated $20 billion in client assets. In light of the theft, he promised that any unrecovered funds would be compensated through the company’s treasury or potentially through a bridge loan from its financial partners.

Historical Context of the Theft

While the identity of the perpetrators remains unknown, the scale of this theft surpasses the previous record of $620 million that was stolen from the Ronin Network in 2022. That incident has been linked to North Korea’s notorious Lazarus group, a cybercriminal faction.

Bybit Background

Founded in 2018, Bybit has quickly risen to prominence in the cryptocurrency exchange market, gaining significant traction and investment over the years. Notably, among its early investors is Peter Thiel, a prominent supporter of former President Donald Trump, as reported by Pitchbook.

As the cryptocurrency landscape continues to grapple with security challenges, Bybit’s experience serves as a stark reminder of the potential vulnerabilities present within digital asset platforms and the ongoing necessity for robust security measures.

For affected users and the broader cryptocurrency community, this incident raises urgent questions about the safety of digital assets and the protocols that exchanges must implement to protect their users. More updates from Bybit are anticipated as the situation develops and their recovery plans unfold.