Massive $1.5B Crypto Theft Shakes Cryptocurrency Exchange

In what experts believe is the biggest digital heist ever, $1.5B Crypto Theft (£1.2 billion) from the cryptocurrency exchange Bybit. The Dubai-based platform has now called on top cybersecurity experts to help recover the stolen funds.

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How the $1.5B Crypto Theft Happened

According to Bybit, the attack targeted one of its Ethereum wallets, which is among the most widely used cryptocurrencies after Bitcoin. The hacker managed to gain control of the wallet and moved the funds to an unknown address.

Despite the massive loss, Bybit quickly reassured its users that their assets were safe. CEO and co-founder Ben Zhou took to social media platform X, stating:

“Bybit is financially stable even if we can’t recover these lost funds. Every client’s assets are fully backed, and we can cover the loss.”

Bybit Promises to Cover the Loss

Zhou emphasized that Bybit holds $20 billion in customer assets and, if needed, can cover the stolen amount either independently or with the help of partners.

With over 60 million users worldwide, Bybit is the second-largest crypto exchange by trading volume. Following news of the breach, the platform saw a surge in withdrawal requests, receiving over 350,000 user requests to withdraw funds. This high volume has led to some processing delays.

Security Breach Details

Bybit explained that the attack happened during a routine transfer from a secure “cold” wallet to a “warm” wallet, which is used for daily transactions. The hacker exploited security measures during this process, but Bybit confirmed that no other wallets were affected.

Ethereum’s price dropped by about 4% after the hack but has since nearly recovered to its previous level.

Reward Offered for Help in Recovering Funds

To boost recovery efforts, Bybit has announced a reward equal to 10% of the stolen funds for anyone who helps retrieve them. If the full amount is recovered, this could mean a payout of $140 million.

Zhou reaffirmed Bybit’s commitment to improving security, strengthening its financial stability, and continuing to serve the crypto community.

“We are determined to learn from this incident, upgrade our security systems, improve liquidity, and remain a trusted platform for our users,” he stated.

Who is Behind the Attack?

The identity of the hackers remains unknown, but some reports suggest that North Korea’s infamous Lazarus Group may be responsible. This group has been linked to major crypto thefts in the past, including the $615 million hack of the Ronin blockchain project in 2022.

This attack comes at a time when the crypto market has been recovering, partly due to Donald Trump’s reelection and his promises to make the U.S. a global hub for cryptocurrency with fewer regulations.

While Bybit works to recover its stolen funds, the event serves as a reminder of the risks in the digital asset space, highlighting the ongoing battle between cybersecurity and cybercrime.