Bybit Hack: Crypto Exchange Reports Theft of $1.5B Worth of Ethereum, Promises to Reimburse Users

Bybit CEO and Founder Ben Zhou assured customers that their “funds are safe” and said that the company has launched a refund program for affected users.

Dubai-based cryptocurrency exchange Bybit has fallen victim to the world's largest crypto hack, losing 400,000 Ethereum in a brazen theft. The stolen crypto, valued at $1.5 billion (roughly ₹13,000 crore), was pilfered during a transaction where attackers managed to breach security protocols, as reported by Bloomberg.

However, Bybit CEO and Founder Ben Zhou moved to reassure customers that their “funds are safe” and announced that the company will be launching a refund program for affected users.

"Bybit is committed to protecting our community, and we will fully reimburse all impacted users,” stated Zhou.

Ethereum, the second-largest cryptocurrency by market capitalization after Bitcoin, was trading at $2,641.41 on Friday following the hack, showing a decline of nearly 4 percent.

According to the CEO, the exchange currently holds about $20 billion in client assets. Bybit boasts over 60 million users globally and offers a wide range of cryptocurrencies on its platform.

Zhou further assured that if the company fails to recover the stolen funds, the refund will be financed either through Bybit's treasury or a bridge loan from partners. "Bybit is solvent even if this hack loss is not recovered, all of the client assets are 1 to 1 backed, we can cover the loss,” he added.

This massive theft has now become the largest crypto hack ever, surpassing the 2022 Ronin Network hack, which saw Ethereum and USD Coin to the tune of $620 million being stolen. That hack was reportedly carried out by North Korea's Lazarus group.

India's largest crypto theft

Earlier in 2024, India's largest crypto theft was reported by WazirX, with the exchange losing $234 million in stolen crypto assets. Following the theft, the stolen digital assets were reportedly sent to an address belonging to North Korean hackers, specifically the Lazarus group.

The hackers are believed to have exploited a vulnerability in WazirX's multi-signature wallets, which typically require multiple keys to authorize a transaction. In this case, the hackers managed to bypass the safety checks and pilfer the crypto.

The exchange was forced to freeze its operations shortly after the hack in order to assess the situation and work on recouping the losses.