Bybit Hit by Record $1.5 Billion Cryptocurrency Heist

Bybit experienced the largest cryptocurrency theft on record, with cybercriminals stealing nearly $1.5 billion in a massive hack.

A 21st Century Heist: Crypto Exchange Hacked

Gone are the days of scouting a location, recruiting an insider, and having a daring getaway driver. The modern heist, as experienced by Bybit, involves a hacker stealing nearly $1.5 billion in Ethereum and staked Ethereum from one of the exchange’s offline wallets, marking the largest cryptocurrency theft on record.

How Did the Theft Occur?

Ben Zhou, Bybit’s CEO, revealed that the hacker gained control of one of the exchange’s cold (offline) wallets, manipulated a planned transfer, and redirected it to an unknown party. “The signature message was meant to alter the logic of our cold ETH wallet’s smart contract,” Zhou wrote. He noted that the hacker “took control of the specific cold ETH wallet we had authorized and transferred all the ETH to this unidentified address.“

The Largest Theft Ever Recorded

Rob Behnke, co-founder and executive chairman of blockchain security firm Halborn, told Bloomberg that this heist is likely the “biggest incident ever recorded, not just in crypto.” The theft at Bybit surpasses previous cryptocurrency theft records, including $620 million stolen from Ronin Network in 2022 and $610 million from Poly Network in 2021.

The Aftermath of the Theft

Despite the magnitude of the theft, Bybit has reassured its customers. “All our other cold wallets are secure. All withdrawals are NORMAL.“, Zhou affirmed. Additionally, Bybit had already secured about 80% of the funds needed to cover the loss through bridge loans from partners. Meanwhile, Bybit’s X account has called for assistance, seeking help from teams specialized in blockchain analysis and fund recovery to trace these assets.