Dubai-based cryptocurrency exchange Bybit has suffered a massive $1.5 billion (approximately Dh5.51 billion) loss after a sophisticated hacking attack. This marks the largest theft in the crypto industry’s history, raising serious concerns about digital asset security.
Following the breach, withdrawal requests surged. However, Bybit confirmed that all withdrawal operations remain fully functional, with users experiencing no delays.
Bybit’s CEO and founder, Ben Zhou, described the attack as possibly the “worst hack in financial history, including banks and crypto platforms.” Despite the setback, he reassured users that all platform functions continue to operate normally.
In response to the incident, the company immediately borrowed Ethereum (ETH) to ensure withdrawal requests were processed without issues. Bybit acted swiftly to maintain platform stability.
According to the company, unauthorized activity was detected in an ETH cold wallet during a routine transfer. Hackers manipulated the transaction, resulting in the loss of over 400,000 ETH. Ethereum remains the second-largest cryptocurrency network, following Bitcoin.
Bybit emphasized that this was an isolated incident. The company assured users that all other cold wallets remain secure, with client funds completely unaffected. Apologizing for the breach, Zhou stressed that user funds are safe.
Bybit currently holds over $20 billion in assets. The company confirmed it has enough reserves to cover the loss without financial strain. If needed, a bridge loan will be secured to ensure all user funds remain available. Zhou reassured clients that Bybit remains solvent and that all assets are fully backed.
The company is actively working with leading blockchain forensic experts to track the stolen funds. Investigators are focusing on a potential vulnerability in the Safe.global platform’s user interface, which may have been exploited.
Authorities have been informed, and Bybit is taking steps to limit the hackers’ ability to liquidate the stolen ETH. Industry partners are collaborating to track and recover the funds.
Launched in 2018, Bybit now serves over 40 million users worldwide. It remains the world’s second-largest cryptocurrency exchange, continuing to operate despite this major security breach.
