Summary:
Bybit calls for cybersecurity experts after a $1.5 billion hack.
An Ethereum wallet was compromised during a routine transfer.
CEO Ben Zhou assures customers their assets are safe and backed 1 to 1.
The company received over 350,000 withdrawal requests post-hack.
Ethereum's price dropped nearly 4% but has since stabilized.
Bybit offers a 10% reward for the recovery of stolen funds.
Bybit Faces the Biggest Digital Heist in History
The cryptocurrency exchange Bybit has issued a call for the "brightest minds" in cybersecurity to assist in recovering $1.5 billion (£1.2 billion) stolen by hackers. This incident is believed to be the largest single digital theft ever recorded.
The Dubai-based platform reported that an attacker gained access to an Ethereum wallet, a prominent digital currency, and transferred its contents to an unknown address. In response, Bybit reassured its customers that their cryptocurrency holdings remain safe. Ben Zhou, co-founder and CEO, stated on social media that the company would refund all affected users, regardless of whether the hacked currency is recovered.
“Bybit is solvent, even if this hack loss is not recovered. All clients' assets are 1 to 1 backed, we can cover the loss,” Zhou emphasized, noting that the company holds $20 billion in customer assets and can manage any unrecovered funds through loans from partners.
Following the news of the hack, Bybit experienced a surge in withdrawal requests, with more than 350,000 requests leading to possible processing delays. The hack occurred during a routine transfer of Ethereum from a “cold” wallet to a “warm” wallet, where the attacker exploited security controls. Zhou assured that all other wallets on the exchange were unaffected.
After the hack was announced, the price of Ethereum dropped nearly 4%, but it has since stabilized. Bybit is actively seeking help from cybersecurity experts and is offering a 10% reward on any recovered funds, which could amount to $140 million if the full amount is retrieved.
Zhou expressed determination to use this setback to fundamentally transform the company's security infrastructure, improve liquidity, and strengthen its partnership within the crypto community.
This incident poses a significant challenge to the crypto industry, which had recently seen a rebound in value, particularly after Donald Trump's promises to make the US the “crypto capital of the planet” amid relaxed regulations.
While the identity of the attacker remains unknown, some reports suggest involvement from North Korean state hackers, such as the Lazarus Group, who have been linked to previous major thefts, including the $615 million heist from the Ronin Group in 2022.
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