Cryptocurrency exchange Bybit has reported a massive security breach, with hackers stealing $1.5 billion (£1.1 billion) worth of Ethereum (ETH) in what could be the largest crypto heist in history.

Bybit Assures Users Their Funds Are Safe

The Dubai-based company’s founder, Ben Zhou, reassured users that their assets remain secure and that affected funds will be reimbursed. Bybit, which holds $20 billion (£15 billion) in assets, stated that it could cover the losses internally or through partner loans.

How the Hack Happened

Bybit confirmed that the hackers targeted security vulnerabilities in its Ethereum digital wallet, transferring the stolen funds to an unknown address. The attack highlights ongoing security concerns in the cryptocurrency industry.

Following the breach, Ethereum’s value dropped 4% on Friday, bringing its price down to $2,641.41 (£2,090) per coin.

Biggest Crypto Heist in History

This theft surpasses the $620 million (£490 million) stolen in 2022 from the Ronin Network, making it the largest known crypto hack to date.

Bybit’s History and Notable Investors

Founded in 2018, Bybit has grown to serve over 60 million users worldwide, providing access to multiple cryptocurrencies. The firm has been linked to high-profile investors, including former U.S. President Donald Trump and ex-PayPal CEO Peter Thiel.

Bybit’s Response and Crypto Market Repercussions

Bybit has reported the hack to authorities and is actively working to trace the attackers. Zhou assured users that all client assets remain fully backed, ensuring solvency even if the stolen funds are not recovered.

Ongoing Crypto Security Concerns

The attack raises fresh concerns about crypto security, an issue that has long plagued the digital currency market. The theft also comes amid renewed interest in cryptocurrencies, following Donald Trump’s controversial launch of his own digital coin, TRUMP. The coin, which initially surged in value, has since faced significant losses.

High-profile figures, including Elon Musk, have weighed in on the volatility of cryptocurrencies, further fueling the debate over their security and stability.

A History of Crypto Exchange Breaches

The Bybit hack is reminiscent of previous major crypto security failures, such as the 2014 Mt. Gox collapse, where $350 million (£210 million) was stolen due to a security loophole, leading to the exchange’s bankruptcy.

Final Thoughts

The record-breaking Bybit hack underscores the risks of cryptocurrency investments and highlights the ongoing battle between security firms and cybercriminals. Investors are urged to remain cautious and ensure they use platforms with robust security measures in place.

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