Dubai-based cryptocurrency exchange Bybit announced on Friday that hackers had stolen $1.5 billion in digital assets, making it the largest crypto theft in history.
Bybit’s CEO and founder, Ben Zhou, addressed the breach in an online discussion, reassuring users that their funds remained secure.
The company later posted on X that it had introduced a refund programme for those affected, stating its commitment to fully reimbursing impacted users and safeguarding its community.
Bybit explained that the attackers exploited vulnerabilities in security protocols during a transaction, allowing them to transfer assets to an unknown address.
This led to the compromise of an offline Ethereum storage wallet, with hackers stealing 400,000 ETH on Friday morning.
Ethereum, the second-largest cryptocurrency after Bitcoin, dropped nearly four percent to $2,641.41 following the attack.
Zhou disclosed that Bybit manages $20 billion in client assets and assured that any unrecovered losses would be covered by the company’s treasury or through a bridge loan from partners.
Although the perpetrators remain unidentified, this breach surpasses the previous record $620 million theft of Ethereum and USD Coin from the Ronin Network in 2022, which was allegedly orchestrated by North Korea’s Lazarus Group.
Established in 2018, Bybit has received investment from notable figures, including Donald Trump ally Peter Thiel, according to PitchBook.
