Bybit, a cryptocurrency firm based in Dubai, has reported a monumental theft amounting to $1.5 billion (£1.1 billion) from its digital wallets, potentially marking the largest crypto heist to date.
The company’s founder, Ben Zhou, reassured users that their assets remain secure and pledged refunds to those affected. The theft targeted Bybit’s Ethereum wallet—Ethereum being the second most valuable cryptocurrency after Bitcoin.
Despite the breach, Zhou remains confident, suggesting the lost funds might be recoverable either through the company’s assets or via loans from partners.
Bybit, which was established in 2018 and boasts assets worth $20 billion (£15 billion), is considering all avenues to address the shortfall. The firm also claims a robust user base exceeding 60 million globally, offering a variety of cryptocurrencies.
The incident saw the hackers manipulating security protocols before transferring the stolen funds to an unknown address.
This event led to a near 4% drop in Ethereum’s value on Friday, pricing the coin at $2,641.41 (£2,090) each. The scale of this heist surpasses the previous record of $620 million (£490 million) stolen from the Ronin Network in 2022.
Bybit has already reported the theft to the authorities and is actively working to trace the culprits, as stated in a recent post on social media platform X.
The firm emphasizes its financial solvency and capability to cover the losses, asserting that all client assets are fully backed.
The incident has cast a spotlight on the vulnerabilities and speculative nature of cryptocurrencies, which have seen varied reactions from the public and investors alike.
The market has faced heightened scrutiny, especially following high-profile endorsements and criticisms from figures such as former US President Donald Trump and Tesla CEO Elon Musk.
Notably, Trump’s recent foray into launching his digital coin, dubbed TRUMP, has stirred controversy and concerns about market stability.
