World's largest crypto theft hits Bybit; $1.5 Billion in Ethereum stolen
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Dubai-based cryptocurrency exchange Bybit has suffered the world's largest-ever crypto hack, with attackers stealing 400,000 Ethereum worth approximately $1.5 billion (around ₹13,000 crore). The company has assured customers that all losses will be reimbursed.
Massive Security Breach at Bybit
According to Bloomberg, the breach occurred when hackers exploited a vulnerability in Bybit's security protocols during a transaction. The attack surpassed the infamous Ronin Network hack of 2022, which saw $620 million worth of Ethereum and USD Coin stolen—allegedly by North Korea's Lazarus Group.
CEO Assures Full Compensation
Bybit's CEO and Founder, Ben Zhou, reassured users that their "funds are safe," confirming that the company has launched a refund program. "Bybit is committed to protecting our community, and we will fully reimburse all impacted users," Zhou stated.
He further emphasized that Bybit holds $20 billion in client assets and remains financially stable. If the stolen funds are not recovered, the company will cover the losses through its treasury or a bridge loan from partners. "Bybit is solvent even if this hack loss is not recovered. All client assets are backed 1:1, and we can cover the loss," Zhou added.
Ethereum Market Impact
Following the attack, Ethereum prices dropped nearly 4%, with the cryptocurrency trading at $2,641.41 on Friday.
India’s Largest Crypto Theft
Earlier in 2024, Indian crypto exchange WazirX reported the country’s largest digital heist, with hackers stealing $234 million. Investigations suggested that the stolen assets were transferred to an address linked to North Korea’s Lazarus Group. The attackers had exploited a vulnerability in WazirX’s multi-signature wallets, bypassing security measures to drain the funds. In response, WazirX temporarily froze operations to assess damages and enhance security.
Bybit's breach now stands as the most significant in cryptocurrency history, raising concerns about security protocols in the digital asset industry.
