Bybit, the cryptocurrency exchange based in Dubai, has reached out for help from top cybersecurity experts to recover $1.5 billion (£1.2 billion) taken by hackers in what is believed to be the largest digital heist ever. An attacker gained access to an Ethereum wallet, a leading cryptocurrency after Bitcoin, and transferred its funds to an unidentified account.
In response, Bybit reassured its customers that their assets remain secure. CEO Ben Zhou announced via social media that the exchange would refund all affected users, regardless of whether the stolen funds are recovered. “Bybit is solvent even if this hack loss is not recovered; all client assets are 1:1 backed, we can cover the loss,” he stated. Zhou further noted that the company holds $20 billion in customer assets, indicating that it can manage any unrecovered losses either through its own resources or loans from partners.
With over 60 million users and ranking as the second-largest cryptocurrency exchange by trading volume globally, Bybit witnessed a spike in withdrawal requests following the breach. Zhou revealed that the platform received more than 350,000 requests for fund withdrawals, which may result in processing delays.
The hack took place during a routine transfer of Ethereum from a cold wallet to a warm wallet, necessary for day-to-day trading activities. The attacker exploited security measures in place during this transfer, but Zhou confirmed that other wallets on the exchange remain safe.
Following the incident, the price of Ethereum fell nearly 4% but has since recovered almost fully. Bybit is now enlisting the help of cybersecurity and crypto analytics specialists to aid in the recovery effort, offering a reward of 10% of any amount retrieved—potentially up to $140 million if the entire theft is reclaimed.
Zhou expressed Bybit’s commitment to overcoming this challenge, stating that the company aims to enhance its security infrastructure, improve liquidity, and continue being a reliable ally in the crypto community. This incident poses a significant setback for the broader crypto sector, which recently experienced a resurgence attributed to former US President Donald Trump’s return to power and his intentions to position the country as a global leader in cryptocurrency with relaxed regulations.
Although the attacker’s identity remains unconfirmed, early reports suggest possible involvement from state-sponsored North Korean hackers, such as the Lazarus Group, known for their involvement in previous large-scale cyber thefts including a $615 million hack of the Ronin Group blockchain project in 2022.