A significant theft amounting to $1.5 billion has occurred at one of the largest crypto exchanges globally. On Friday, Ben Zhou, the co-founder and CEO of the crypto exchange Bybit, announced that hackers had taken control of Bybit’s Ethereum (ETH) wallet, transferring all its contents to an undisclosed crypto wallet.
This incident marks the largest cryptocurrency theft to date, with $1.5 billion in cryptocurrency stolen from Bybit and its customers. Molly White from Web3IsGoingGreat noted that the hacker is unable to cash out the full amount in Ethereum, as such a transaction would significantly affect the value of ETH. Despite this, the theft represents more than half of all cryptocurrency stolen in 2024, according to last year’s report by Chainalysis, which recorded $2.2 billion stolen from crypto platforms during that year.
Ben Zhou expressed hope for the recovery of the stolen funds and assured that Bybit would cover the losses, guaranteeing customers a refund for any lost holdings. He emphasized that Bybit’s solvency remains intact despite the hack, with all client assets backed one-to-one.
The news of the hack caused concern among Bybit customers, leading to massive withdrawals from the platform. GovInfoSecurity reported that withdrawals reached a peak of $5.3 billion on Saturday night. Currently, Bybit claimed to have $20 billion in crypto assets.
In a statement on Sunday, CEO Zhou announced that the company closed the financial gap caused by the heist through loans, significant deposits, and ETH purchases. Bybit has also initiated a bounty program offering up to 10 percent of the stolen amount, or $140 million, for the recovery of the stolen funds. Bybit, the second-largest cryptocurrency exchange by trading volume, is calling on experts in cybersecurity and crypto analytics to assist in the global effort to identify the culprits behind this significant crypto heist.