Massive $1.5 Billion Heist: How Hackers Targeted a Crypto Exchange in History’s Largest Digital Theft

Bybit, a cryptocurrency exchange based in Dubai, is facing a major challenge after hackers stole $1.5 billion worth of cryptocurrency. This incident is believed to be one of the largest digital thefts ever.

Hackers gained access to an Ethereum wallet, sending its contents to an unknown address. In response, Bybit assured its users that their funds are safe. CEO Ben Zhou took to social media, pledging that the company would refund all affected customers, regardless of whether the stolen cryptocurrency could be retrieved.

“Bybit is solvent, and we can cover the loss,” Zhou stated, emphasizing that client assets are fully backed. He noted that Bybit holds about $20 billion in customer assets, allowing them to handle any unrecovered funds, even if it means borrowing from partners.

With over 60 million users, Bybit is the second-largest cryptocurrency exchange globally by trading volume. Following the hack, the company experienced a surge in withdrawal requests, with over 350,000 requests received. This could lead to delays in processing withdrawals.

The breach occurred during a routine transfer of Ethereum from a “cold” wallet to a “warm” wallet used for trading. An attacker took advantage of the security measures in place during this transfer, but Zhou assured users that all other wallets on the platform remained secure.

After the news broke, Ethereum’s price dropped nearly 4% but has since stabilized. Bybit is now calling on cybersecurity experts to help recover the stolen funds and is offering a reward of 10% of the recovered amount, which could mean up to $140 million.

“Bybit is determined to strengthen our security and support the crypto community,” Zhou said.

This hack poses a significant setback for the cryptocurrency industry, which has seen recent growth. Some speculate that the attackers might be linked to North Korean state hackers, specifically the Lazarus Group, known for their involvement in past major heists.