Bybit Suffers US$1.5 Billion Ethereum Theft in Record Crypto Hack

Bybit, a Dubai-based cryptocurrency exchange, has reported a US$1.5 billion theft in Ethereum, marking the largest digital asset hack in history. The breach occurred during a routine transfer of assets between the company’s digital wallets.

The attack happened as Bybit moved funds from a cold wallet, used for secure offline storage, to a hot wallet for daily transactions. Hackers exploited vulnerabilities during this transfer, redirecting the funds to an unknown address.

Despite the scale of the theft, Bybit assured customers that their assets remain secure and fully backed on a one-to-one basis. The company pledged to cover any losses, even if the stolen funds are not recovered.

Bybit’s co-founder and CEO, Ben Zhou, addressed the incident on social media platform X, formerly Twitter, emphasizing the company’s solvency. Bybit currently holds US$20 billion in customer assets and is prepared to seek loans from partners if necessary. “Bybit is solvent even if this loss is not recovered. All customer assets are backed one-to-one, and we can cover the loss,” Zhou stated.

The hack caused Ethereum’s value to briefly drop by 4%, although it has since partially recovered. Bybit also experienced a surge in withdrawal requests, receiving over 350,000 requests in the aftermath, potentially delaying transactions.

To address the breach, Bybit has engaged cybersecurity and blockchain analytics experts to track the stolen funds. The company is offering a 10% bounty—up to US$140 million—for information leading to their recovery. Zhou also announced plans to strengthen security measures and improve liquidity management to maintain user confidence.

This incident surpasses the US$620 million Ronin Network hack in 2022, making it the largest cryptocurrency theft to date. Preliminary reports cited by The Guardian suggest potential involvement by North Korea-backed hacking groups, such as Lazarus Group, known for targeting the cryptocurrency industry.

The attack underscores ongoing security concerns in the digital asset market, which continues to face scrutiny for its volatility and platform vulnerabilities. Major exchanges like Mt. Gox and Binance have previously suffered similar breaches, resulting in substantial financial losses.

Bybit, founded in 2018, is the world’s second-largest cryptocurrency exchange by trading volume, with over 60 million users worldwide.