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Bybit Faces Major Hack, Losing Nearly $1.5 Billion in Cryptocurrency
In a significant breach emblematic of modern cybercrime, Bybit experienced a devastating hack that led to the theft of approximately $1.5 billion in Ethereum (ETH) and staked Ethereum from its offline wallets. This incident marks the largest cryptocurrency theft recorded to date and has been described by blockchain security experts as potentially the largest heist of all time across any industry.
According to Bybit’s CEO Ben Zhou, the attack involved the hacker seizing control of a cold wallet—an offline storage solution usually regarded as more secure. Zhou explained that the perpetrator managed to manipulate a scheduled transfer, changing the smart contract logic associated with their Ethereum cold wallet. “The hacker took control of the specific ETH cold wallet we signed and transferred all ETH in the cold wallet to this unidentified address,” Zhou reported on X.
A Historic Loss in the Cryptocurrency Space
This recent heist surpasses previous notable cryptocurrency thefts, including the infamous $620 million taken from the Ronin Network in 2022 and a $610 million loss from Poly Network in 2021. Additionally, the 2011 Mt. Gox hack resulted in the loss of 850,000 Bitcoins, an amount that, considering inflation, translates to over $81 billion in today’s market, significantly overshadowing the Bybit incident.
Prior to this hack, Bybit was operating with an estimated $16.2 billion in assets and was seeing more than $36 billion in daily trading volume. The theft represents about nine percent of the exchange’s total assets, causing immediate repercussions in the market, including a 6.7 percent drop in Ether and a three percent decrease in Bitcoin that day.
Reassurances Amid Instability
In light of the breach, Zhou attempted to reassure Bybit’s users by stating that all remaining cold wallets were secure, and normal withdrawal operations would continue. “Please rest assured that all other cold wallets are secure,” he posted, emphasizing that withdrawals were operating as usual. While this optimistic tone may comfort some users, it raises questions about overall security protocols and the resilience of the platform.
Zhou also noted that Bybit had managed to secure around 80 percent of the necessary funding to cover the loss through partner bridge loans, indicating a level of financial preparedness following the incident. This suggests that, despite the enormity of the theft, the exchange might stabilize more quickly than anticipated. “Your money is safe, and our withdrawals are still open,” he declared during a recent livestream.
Seeking Assistance in Recovery
In a move that underscores the seriousness of the situation, Bybit’s social media channels have reached out for specialized support. The platform’s representatives have invited teams with expertise in blockchain analytics and asset recovery to collaborate in tracing the stolen funds. This call for assistance highlights not only the scale of the theft but also the challenges involved in reclaiming lost assets in the complex world of cryptocurrency.
The Bybit incident serves as a stark reminder of the vulnerabilities present in the cryptocurrency landscape, as exchanges continue to grapple with security measures necessary to protect vast sums of digital assets from increasingly sophisticated attacks.
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