On 21 February 2025, hackers stole approximately $1.5bn in digital assets from Bybit’s Ethereum wallet.
The Dubai-based cryptocurrency platform Bybit has called it the “biggest cryptocurrency heist ever recorded”.
Bybit was founded in 2018 and has more than 60 million users worldwide. It offers access to various cryptocurrencies, including Ethereum.
Ethereum is the second-biggest cryptocurrency by market value after Bitcoin. An Ethereum wallet is a software or hardware interface that allows users to store and manage their Ethereum-based tokens securely.
However, a hacker managed to gain control of an Ethereum wallet and transfer the contents to an unknown address.
According to Bybit, the hack occurred when the company was making a routine transfer of Ethereum from an offline “cold” wallet to a “warm” wallet, which covers its daily trading. An attacker exploited security controls during this process.
As soon as the incident was detected, Bybit’s security team locked down systems and secured funds.
Posting on X, Bybit CEO Ben Zhou tried to reassure users that the company held $20bn in customer assets, and would be able to refund all those affected, even if the hacked currency was not returned.
Users were also directed to a livestream session, which latest for two hours, and provided real-time updates and detailed explanations, ensuring stakeholders were informed.
In a statement posted on its website, Bybit thanked the crypto industry for rallying around it during the hack, “demonstrating a united front against security threats”.
For instance, major crypto exchanges blacklisted the hacker’s wallets, preventing further movement of the stolen funds.
“This unprecedented show of unity underscores the growing maturity of the crypto sector, where competitors become allies in times of need,” said Zhou.
Bybit received more than 350,000 withdrawal requests from customers, which it processed within 12 hours of the hack.
The company called on “the brightest minds in cyber security and crypto analytics” to help it try to recover the hacked funds. While the money has not been recovered, in a post on X today Bybit revealed that it had some information about who the attacker was or at least where the $1.5bn had gone.
Be the first to comment