Theft of 1 Billion in Crypto Could Set New Record
Cryptocurrency firm Bybit announced a staggering theft involving $1.5 billion (1.1 billion) worth of digital currency, potentially marking the largest crypto heist in history. The Dubai-based companys founder assured users that their funds were secure and expressed readiness to refund any affected parties.
The stolen assets reportedly came from Bybit’s Ethereum wallet, a cryptocurrency second only to Bitcoin in terms of value. In response to the incident, Bybit CEO Ben Zhou emphasized that the firm could manage or borrow money from partners to cover this loss. The company currently holds approximately $20 billion (15 billion) worth of assets.
Security experts believe hackers exploited vulnerabilities within Bybit’s system before transferring the stolen funds to an unknown address. This theft led to a 4% drop in Ethereums value on Friday, bringing its price per coin down to about $2,641.41 (2,090). This scale of loss surpasses previous records such as the $620 million (490 million) heist from Ronin Network in 2022.
Bybit was established in 2018 and boasts over 60 million users worldwide. It provides access to various cryptocurrencies, including Ethereum. The companys CEO stated that it is solvent despite the loss and has one-to-one asset coverage for all clients, ensuring their safety. Additionally, Bybit reported the incident to authorities and is actively working on identifying and apprehending the hackers.
The cryptocurrency market continues to attract controversy as critics argue about its speculative nature and potential manipulation of values. Recent events involving US President Donald Trump’s launch of a digital coin called TRUMP highlight ongoing security concerns within this sector, especially after such incidents undermine trust in digital currencies.
Prior instances of major crypto thefts include the bankruptcy of Mt Gox in 2014 due to an $350 million (210 million) heist and a 2019 Binance hack that stole $41 million worth of Bitcoin. These incidents underscore the need for robust security measures within cryptocurrency exchanges to protect investors’ funds.
