Bybit, a leading cryptocurrency exchange based in Dubai, UAE, announced a significant security breach that resulted in the theft of approximately $1.4 billion worth of Ethereum (ETH). The hackers managed to take control of Bybit's offline wallet in what is described as a sophisticated attack. This theft potentially marks the largest single cryptocurrency heist in history, surpassing previous breaches such as those against the Ronin Network and Poly Network.
The incident unfolded when Bybit detected unauthorized access to one of its offline wallets. Bybit's chief executive and co-founder, Ben Zhou, confirmed in a livestream that the hackers stole around 401,346 ETH. Despite the magnitude of this breach, Zhou reassured stakeholders that the company remains solvent and capable of covering the loss, even if the stolen funds are not recovered.
Industry experts have weighed in on the gravity of the situation. Tom Robinson, co-founder and chief scientist at Elliptic, highlighted the scale of the theft.
"In fact, it may even be the largest single theft of all time"
- Tom Robinson, Elliptic's co-founder and chief scientist
The total amount of cryptocurrencies stolen by hackers in 2024 reached approximately $2.2 billion, according to Chainalysis. The recent breach at Bybit contributes significantly to this figure. The Ethereum theft alone amounts to nearly two-thirds of this year's total crypto losses.
Bybit's estimated total assets were around $16 billion as recently as last week, according to CoinMarketCap. This is a significant increase from the company's estimated assets of $2 billion in 2023. Despite the setback, Bybit's financial position suggests that it can withstand the impact without jeopardizing its operations.
Historical comparisons highlight the significance of this breach. The previous record for a crypto hack was held by Ronin Network, with $624 million stolen, followed closely by Poly Network's $611 million loss. Both incidents pale in comparison to the latest attack on Bybit.
The theft also draws parallels with traditional banking heists. The withdrawal of around $1 billion from the Central Bank of Iraq is cited as the largest bank robbery ever recorded by World Finance. The Bybit incident now stands alongside such historical events due to its sheer scale.
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