Bybit, a Dubai-based cryptocurrency exchange, has disclosed that hackers stole $1.5 billion (£1.1 billion) worth of digital assets in what may rank as the largest crypto theft in history.
The breach, which targeted the platform’s Ethereum wallet, has raised fresh alarms over security vulnerabilities in a market already grappling with transparency issues.
Ben Zhou, Bybit’s founder, moved quickly to reassure customers that their funds were secure, pledging the exchange would cover any losses—either by dipping into its own reserves or seeking partner loans. “Bybit is solvent even if this hack loss is not recovered,” he stated, insisting user deposits remain fully backed, “1 to 1.”
The attackers reportedly exploited security loopholes to move funds to an unknown digital address. Ethereum, the world’s second most valuable cryptocurrency after Bitcoin, fell 4% in value on Friday to $2,641.41 (£2,090) in response to news of the breach. Bybit holds around $20 billion (£15 billion) in assets under management and says it has reported the incident to the authorities.
If confirmed, the theft would eclipse a $620 million (£490 million) hack in 2022, when cybercriminals stole Ethereum and USD Coin from the Ronin Network. Founded in 2018, Bybit previously received backing from high-profile names including US President Donald Trump and PayPal co-founder Peter Thiel, according to reports.
Despite the staggering figure, Mr Zhou insists that Bybit’s customers will not be left out of pocket. “All of clients’ assets are 1 to 1 backed,” he said on social media. “We can cover the loss.” The company has promised a full refund to those affected, though it remains unclear how it will ultimately raise the $1.5 billion required.
Scrutiny around the cryptocurrency industry has intensified in recent years, especially after Mr Trump’s own foray into digital coins. The former president launched a cryptocurrency called ‘TRUMP’ ahead of his inauguration, but later claimed limited knowledge about digital assets. Meanwhile, Elon Musk—chief executive of Tesla and an adviser to Mr Trump—has been known to talk up Bitcoin and other cryptos, further fuelling volatility.
Notable crypto heists include the collapse of Tokyo-based exchange Mt Gox in 2014, which lost $350 million (£210 million) in a security breach, and a 2019 incident in which Binance suffered a $41 million Bitcoin theft. Industry insiders say such thefts underscore lingering security concerns, undermining efforts to rebuild confidence in digital assets as a serious investment class.
Bybit said it is “working quickly and extensively” to trace the hackers, while seeking closer cooperation with security experts and law enforcement. For now, the firm and its users must contend with a high-profile reminder that even major players are not immune to crypto’s persistent and costly security hazards.
