Bybit, the Dubai-based cryptocurrency exchange, has enlisted top cybersecurity experts to help recover $1.5 billion (£1.2 billion) stolen in what is believed to be the largest single digital theft in history.
Hackers gained control of an Ethereum wallet during a routine transfer from an offline “cold” wallet to a “warm” wallet used for daily trading. Exploiting security controls, they moved the funds to an unknown address.
Bybit reassured customers that their assets remained secure and pledged to refund all affected users, even if the stolen funds were not recovered. CEO Ben Zhou emphasised the platform’s financial stability: “Bybit is solvent even if this loss is not recovered. All client assets are 1:1 backed, and we can cover the loss.” The company holds $20 billion in customer assets and can absorb the impact through its reserves or partner loans.
Following the breach, withdrawal requests surged, with over 350,000 customers seeking to retrieve funds, causing potential delays. Despite the setback, Bybit remains operational and has announced a 10% reward—potentially up to $140 million—for any successful recovery of the stolen funds.
Ethereum’s price dropped nearly 4% after the hack but has since rebounded. Meanwhile, speculation about the attacker’s identity has arisen, with some reports pointing to North Korean state-sponsored hackers, including the infamous Lazarus Group, known for past multi-million-dollar crypto heists.
Bybit has vowed to strengthen its security infrastructure and enhance liquidity while working with the global crypto community to prevent future breaches.
