- Bybit exchange reported a major hack on Friday.
- CEO Ben Zhou announced a loss of about $1.5 billion.
- This might be the largest cryptocurrency hack to date.
Bybit, a cryptocurrency exchange based in Dubai, revealed on Friday that it had experienced a massive theft, with hackers making off with approximately $1.5 billion worth of Ethereum.
In a livestream, CEO Ben Zhou explained that the hack involved around 401,000 Ethereum. It took place while the company was making a routine transfer from its cold wallet, which is an offline storage method, to a warm wallet used for day-to-day transactions.
The attack was highly sophisticated. Bybit stated that hackers manipulated the transaction process, displaying the correct address while secretly changing the smart contract’s logic. This allowed them to take control of the cold wallet and transfer its contents to an unknown address.
Zhou assured users that Bybit remains solvent, indicating that the company can cover the loss, as all client assets are backed 1-to-1. He also confirmed that other wallets and withdrawal functions were not affected. Bybit claims to manage over $20 billion in assets.
In the aftermath of the hack, Bybit saw a spike in withdrawal requests. By Saturday, they reported successfully processing over 580,000 withdrawals since the incident.
The company is collaborating with blockchain forensic experts to track the stolen funds. Research firm Arkham Intelligence mentioned on social media that the stolen assets began moving to new addresses, where they are being liquidated.
As part of its recovery efforts, Bybit introduced a “recovery bounty program,” offering rewards of up to 10% of the recovered amount to cybersecurity professionals who help retrieve the stolen cryptocurrencies.
In 2024 alone, over $2.2 billion was reported stolen from various crypto platforms, as highlighted by blockchain analysis firm Chainalysis. The crypto world continues to grapple with security challenges, emphasizing the need for enhanced protection measures.
Bybit has not yet responded to further inquiries from the media about this incident.
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