In what could be the largest cryptocurrency theft in history, Dubai-based firm Bybit has confirmed that hackers have stolen $1.5bn (£1.1bn) worth of digital currency from its Ethereum wallet. The incident, detailed by Bybit’s founder Ben Zhou, saw the hackers exploit security vulnerabilities and transfer the funds to an unidentified address.
Despite the massive loss, Zhou reassured users that their assets remain 1:1 backed and that Bybit is solvent even if the loss is not recovered. The company has committed to refund any affected users, potentially covering the theft through internal funds or a loan from partners. Bybit, founded in 2018, currently manages around $20bn (£15bn) in assets and serves over 60 million users worldwide.
The theft has had immediate repercussions in the market, with Ethereum’s price falling by approximately 4%, settling at around $2,641.41 (£2,090) per coin on Friday. This incident dramatically eclipses the previous record—an attack on the Ronin Network in 2022 that resulted in a $620m (£490m) loss involving Ethereum and USD Coin.
Authorities have been notified, and Bybit is working intensively to identify the perpetrators. The case highlights ongoing security concerns in the cryptocurrency sector, a market often criticized for its volatility and susceptibility to manipulation. Recent developments, such as the launch of a digital coin by former U.S. President Donald Trump and endorsements from figures like Elon Musk, have only further amplified the debate over crypto security and regulatory oversight.
