Dubai-based cryptocurrency exchange Bybit suffered a heavy breach after hackers gained access to a wallet containing Ethereum and stole $1.5 billion.
Despite what is believed to be the largest single digital heist in history, Bybit has reassured customers that their funds remain safe. CEO Ben Zhou confirmed on social media that the company would fully refund all affected users, even if the stolen assets are not recovered.
“Bybit is solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss,” Zhou posted on X.
He added that Bybit holds $20bn in customer assets and can absorb the financial hit independently or through partner loans.
Mass withdrawalsBybit, the second-largest crypto exchange by trading volume, has over 60 million users worldwide. News of the hack triggered a flood of withdrawal requests, with more than 350,000 users attempting to pull their funds, causing delays in processing.
How did the attack take place?The attack took place during a routine transfer of Ethereum from an offline "cold" wallet to a "warm" wallet, which is used for daily trading. The CEO said that hackers exploited security controls to access the funds, though all other wallets remain unaffected.
In what is believed to be the largest single digital heist in history, the attackers transferred the crypto to an unknown address, as per The Guardian
Following the news, the price of Ethereum dropped nearly 4 per cent on Friday, but has since rebounded.
$140m reward for recovery effortsNow, the company appeals to all “the brightest minds in cybersecurity and crypto analytics worldwide to help it recover the lost asset.
Additionally, it is offering a 10 per cent bounty on recovered funds, meaning a potential $140m payout in case the full amount is retrieved. The company has called on leading cybersecurity and crypto analytics experts to assist in tracking down the stolen assets.
“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 stated.
Suspicions of North Korean involvementWhile the hacker's identity remains unknown, some reports suggest links to North Korean state-sponsored groups, such as the Lazarus Group, which has been linked with large-scale crypto heists, including the $615m Ronin Network hack in 2022.
The attack is a major blow to the crypto industry, which had been experiencing a resurgence, partly driven by Donald Trump’s return to the White House and his promise to make the US the "crypto capital of the planet" through relaxed regulations.
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less