Bybit reports $1.5 billion crypto theft, the largest in industry history

Dubai-based cryptocurrency exchange Bybit reported on Friday that hackers stole $1.5 billion worth of digital assets in what marks the largest crypto theft

Dubai-based cryptocurrency exchange Bybit said on Friday that hackers stole $1.5 billion worth of digital assets in what marks the largest crypto theft in industry history.

The scale of the theft far exceeds the previous record: a $620 million heist of Ethereum and USD Coin from the Ronin Network in 2022, which was allegedly carried out by North Korea's Lazarus group.

Bybit CEO and founder Ben Zhou addressed the hack during an online chat, assuring users that "your funds are safe."

"We've launched a refund program for users affected by today's hack. Bybit is committed to protecting our community, and we will fully reimburse all impacted users," the company added on X.

According to the company, attackers exploited security protocols during a transaction, enabling them to transfer the assets to an unidentified address.

This compromised an offline "wallet" that stored Ethereum, and the hackers stole 400,000 ETH on Friday morning.

Ethereum is the second-largest cryptocurrency by market value after Bitcoin, and was worth $2,641.41 on Friday after the hack, down nearly four percent.

Zhou stated that Bybit holds $20 billion in client assets and pledged that any unrecovered funds would be covered through the company's treasury or a bridge loan from partners.

While the perpetrators remain unknown, the scale of the theft far exceeds the previous record: a $620 million heist of Ethereum and USD Coin from the Ronin Network in 2022, allegedly carried out by North Korea's Lazarus group.

Founded in 2018, Bybit counts prominent Donald Trump ally Peter Thiel among its early investors, according to Pitchbook.