$1.5 Billion Breach of Bybit Could Potentially Be the Most Extensive Crypto Theft in History
After revealing on Friday that hackers had absconded with digital tokens valued at approximately $1.5 billion in what might be the largest cryptocurrency robbery of all time, CEO Ben Zhou announced on Sunday that Bybit had restored its reserves. This was achieved through a combination of emergency funding and substantial deposits.
Assuring users that their funds were secure, Zhou stated on Friday that the company would reimburse anyone impacted. Just under 72 hours later, Zhou declared that Bybit had recovered the exchange’s funds and maintained customer withdrawal services, although no explanation was given for the stolen cryptocurrency.
The extent of the Bybit robbery surpasses the previous record set by a $615 million theft of Ethereum and U.S. coins from the Ronin Network in 2022.
Details of the Cryptocurrency Theft
The cryptocurrency was filched during a routine internal transfer from its Ethereum coin “cold wallet,” which is a digital wallet usually maintained offline for enhanced security, according to Zhou. Ethereum, the second-largest cryptocurrency, followed Bitcoin.
In a prior correspondence on X, Zhou mentioned that the hackers had executed a “masked transaction” to deceive the exchange into providing cryptographic authorization for a modification in the smart contract code regulating a wallet containing its Ethereum reserves.
“Rest assured that all other cold wallets are secure,” Zhou reassured. “All withdrawals are proceeding normally.”
Bybit disclosed that the hackers exploited security protocols and then transferred the assets to an undisclosed destination. Following the theft, the value of Ethereum experienced a 4% decline on Friday, with each coin now valued at $2,641.41.
Identified Suspect
The Lazarus Group, a cybercrime group associated with North Korea’s Reconnaissance General Bureau, has been pinpointed by blockchain security specialists. Blockchain analyst ZachXBT corroborated his claims with evidence linking the breach to Lazarus, citing established patterns congruent with recent cyber campaigns attributed to North Korea.
North Korea has previously been linked to various crypto exchange breaches to pilfer digital resources, launder the proceeds, and channel the funds into its nuclear weapons program. In January, the United States, South Korea, and Japan jointly implicated North Korea in crypto thefts amounting to roughly $660 million in 2024 alone.
Cryptocurrency has emerged as a preferred tool for criminals to launder illicit funds.
Prominent Early Backers of Bybit and Its 60 Million Users
Established in 2018, Bybit reportedly boasts prominent early investors such as President Donald Trump and former PayPal executive Peter Thiel.
Bybit claims to serve over 60 million users globally and provides access to various cryptocurrencies.
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