The cryptocurrency exchange Bybit has called on the “brightest minds” in cybersecurity to help recover $1.5 billion (£1.2 billion) stolen by hackers, marking what is believed to be the largest single digital theft in history. The Dubai-based crypto platform revealed that an attacker gained control of a wallet containing Ethereum, one of the most popular digital currencies after Bitcoin, and transferred its contents to an unknown address.
Bybit reassured its customers that their cryptocurrency holdings remain secure. Ben Zhou, Bybit’s co-founder and CEO, took to social media to confirm that the company would refund all affected users, even if the stolen funds are not recovered. “Bybit is solvent even if this hack loss is not recovered; all clients’ assets are 1-to-1 backed, and we can cover the loss,” Zhou posted on X. He further noted that the company holds $20 billion in customer assets and could cover any shortfall independently or through partner loans.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume with over 60 million users globally, reported a surge in withdrawal requests following the news of the breach. Zhou stated that the company received more than 350,000 withdrawal requests, which could lead to processing delays.
The hack occurred during a routine transfer of Ethereum from an offline “cold” wallet to a “warm” wallet used for daily trading. An attacker exploited security controls to transfer the assets, though Zhou confirmed that all other wallets on the exchange remain unaffected. Following the breach, Ethereum’s price dropped nearly 4% but has since rebounded to near its previous levels.
To aid recovery efforts, Bybit is offering a reward of 10% of the recovered amount, potentially totaling $140 million if the entire stolen sum is retrieved. The company has appealed to “the brightest minds in cybersecurity and crypto analytics” for assistance.
“Bybit is determined to rise above the setback and fundamentally transform our security infrastructure, improve liquidity, and be a steadfast partner to our friends in the crypto community,” Zhou said in a statement.
The incident poses a significant challenge for the cryptocurrency industry, which has seen a resurgence in recent months, partly fueled by Donald Trump’s return to the White House and his vision of making the US the “crypto capital of the planet” under relaxed regulations.
— news from The Guardian