Bybit suffers world's largest crypto heist; XX,000 crore in Ethereum stolen

Dubai-based cryptocurrency exchange Bybit has suffered the largest crypto hack in history, with attackers exploiting security vulnerabilities to steal 400,000 Ethereum, valued at approximately $1.5 billion (₹13,000 crore). According to a report by Bloomberg, the breach occurred during a transaction, raising concerns over digital asset security.

Bybit CEO promises full compensation

Ben Zhou, the CEO and founder of Bybit, assured users that their funds remain secure despite the massive breach. “Bybit is committed to protecting our community, and we will fully reimburse all impacted users,” Zhou stated.

The company has launched a refund initiative to compensate affected users. Zhou further explained that if the stolen assets cannot be recovered, Bybit will use its treasury reserves or secure a bridge loan from financial partners to cover the losses.

Ethereum prices dip post-hack

Ethereum, the world’s second-largest cryptocurrency after Bitcoin, saw a decline of nearly 4% following the incident, dropping to $2,641.41 on Friday. Bybit currently holds over $20 billion in client assets and serves more than 60 million users worldwide.

This latest cyberattack surpasses the infamous 2022 Ronin Network hack, in which hackers stole $620 million worth of Ethereum and USD Coin. That attack was reportedly orchestrated by North Korea’s Lazarus Group.

India’s biggest crypto heist

Earlier in 2024, India witnessed its largest cryptocurrency theft when WazirX, a leading exchange, reported a $234 million loss. Investigations revealed that North Korean hackers, allegedly from the Lazarus Group, exploited vulnerabilities in WazirX’s multi-signature wallets, bypassing security measures to steal funds.

Following the breach, WazirX temporarily halted operations to assess the damage and strengthen its security infrastructure.

Growing cybersecurity threats in crypto

The Bybit hack underscores the increasing vulnerability of cryptocurrency exchanges to cyberattacks. As digital assets grow in popularity, security measures must evolve to counter sophisticated hacking attempts.