Bybit seeks cybersecurity experts to recover $1.5 billion in historic crypto heist

DUBAI: Bybit, a cryptocurrency exchange based in Dubai, has reached out to top cybersecurity experts to assist in recovering $1.5 billion that was stolen in what is believed to be the largest single digital theft in history. An attacker managed to take control of an Ethereum wallet and transferred its contents to an unknown destination.

In response to the incident, Bybit reassured its customers that their cryptocurrency assets remain secure. The company’s CEO, Ben Zhou, stated on social media that Bybit would refund all customers impacted by the hack, even if the stolen currency is not returned. He emphasized, “Bybit is solvent even if this hack loss is not recovered; all of clients’ assets are 1-to-1 backed, and we can cover the loss.” Zhou noted that the company holds $20 billion in customer assets, affirming their ability to cover any unrecovered funds either independently or through loans from partners.

As the world’s second-largest cryptocurrency exchange by trading volume, Bybit serves over 60 million users globally. Following news of the hack, the exchange experienced a significant uptick in withdrawal requests, with Zhou mentioning that the firm received over 350,000 requests, potentially causing processing delays.

The hack took place while Bybit was performing a routine transfer of Ethereum from a secure “cold” wallet to a “warm” wallet for daily trading operations. The attacker exploited vulnerabilities in the security measures, enabling them to transfer the funds. Zhou assured users that all other wallets on the platform remained unaffected.

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In the wake of the hack, the price of Ethereum dropped nearly 4% but has since nearly regained its previous values. The exchange has called upon “the brightest minds in cybersecurity and crypto analytics” to aid in the effort to recover the lost funds, offering a reward of 10% of the total amount retrieved, which could reach $140 million if the entire sum is recovered.

In a statement, Zhou mentioned, “Bybit is determined to rise above the setback and fundamentally transform our security infrastructure, enhance liquidity, and be a steadfast partner to our friends in the crypto community.”

This theft represents a significant setback for the cryptocurrency industry, which has seen a resurgence in recent months, fueled in part by Donald Trump’s potential return to the presidency and his pledge to position the US as the “crypto capital of the planet” with more flexible regulations. Although the identity of the hacker remains unknown, some reports speculate that they may be linked to North Korean state-sponsored hacking groups, such as the Lazarus Group, which has been implicated in other major cyber heists, including the $615 million theft from the Ronin Group blockchain project in 2022.