Dubai, UAE – In what is being described as the largest cryptocurrency heist in history, Dubai-based crypto exchange Bybit has lost approximately $1.5 billion (Dh5.51 billion) worth of digital assets due to a “sophisticated attack.” Despite the breach, the company has assured users that all functions remain operational and that withdrawal requests have not been halted.
Bybit CEO and founder Ben Zhou confirmed the incident, calling it the “worst hack possibly in the history of any medians (banks, crypto, finance).” However, he reassured customers that the exchange remains fully functional, and the withdrawal system is back to normal, allowing users to withdraw any amount without delays.
The Attack and Immediate Response
The exchange detected unauthorized activity in an Ethereum (ETH) cold wallet during a routine transfer. Hackers manipulated the transaction, resulting in the theft of over 400,000 ETH. Ethereum, the second-largest cryptocurrency by market capitalization after Bitcoin, was targeted in the attack.
In response, Bybit borrowed ETH to facilitate withdrawals, ensuring that users were not affected by liquidity constraints. Zhou reiterated that all other cold wallets and client funds remain secure, calling the breach an “isolated incident.”
Financial Stability and Recovery Measures
Bybit, which holds over $20 billion in assets, stated that it has more than enough funds to cover the loss. If necessary, the company will secure a bridge loan to maintain fund availability for users.
“Bybit is solvent even if this hack loss is not recovered, all clients’ assets are 1:1 backed, and we can cover the loss,” Zhou posted on X (formerly Twitter).
Investigation and Security Enhancements
Bybit is actively working with leading blockchain forensic experts to trace the stolen funds and identify the perpetrators. Investigations are focusing on a potential vulnerability in the user interface of Safe.global, which may have been exploited during the transaction process.
Authorities have been informed, and measures are being taken to limit the hackers’ ability to liquidate the stolen ETH in legitimate markets.
The company also acknowledged the support of industry partners, who worked overnight to assist with solutions. One expert reportedly took the first available flight to Dubai to join Bybit’s security team in their efforts to track the stolen assets and strengthen security protocols.
Bybit’s Market Position and Assurance
Founded in 2018, Bybit has grown to become the world’s second-largest crypto exchange, boasting over 40 million users globally. Despite the significant loss, the company remains committed to ensuring the security and stability of its platform.
Zhou concluded by apologizing for the incident and reassuring users that Bybit is taking every possible step to recover the stolen funds and prevent future breaches.
Ongoing Developments
Bybit continues to monitor the situation closely, and further updates are expected as the investigation progresses.
