Cryptocurrency exchange Bybit announced that one of its Ethereum cold wallets was compromised. An attacker managed to transfer approximately $1.5 billion worth of assets to an unidentified address, triggering widespread concern in the crypto community.
Bybit confirms breach
Bybit CEO Ben Zhou confirmed the security breach on Friday, stating that only one ether wallet was affected. All other wallets remain secure, and withdrawals continue to function normally. “All client funds are safe, and our operations continue as usual without any disruption,” the company assured users in a statement. Bybit, which serves over 60 million users globally, emphasised that it remains solvent and has the necessary reserves to cover the loss.
12 hr from the worst hack in history. ALL withdraws have been processed. Our withdraw system is now fully back to normal pace, you can withdraw any amount and experience no delays. Thanks for your patience and we are sorry that this has happened.
Bybit will come out with full…
— Ben Zhou (@benbybit) February 22, 2025 North Korean hackers suspected
Blockchain researchers and security analysts suspect North Korean hackers may be responsible for the attack. On-chain analyst ZachXBT and research firm Arkham Intelligence reported that the stolen funds have started moving to new addresses, where they are being liquidated.
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According to blockchain security firm Elliptic, this heist surpasses the previous record of $611 million stolen from Poly Network in 2021. Security expert Rob Behnke described it as possibly the “largest financial cyberattack ever.”
To reassure users, Zhou appeared on a livestream, stating that the exchange had secured 80% of the funds needed to cover losses through bridge loans. Legal action is also being pursued against the hackers in an attempt to recover the stolen assets.
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Bybit users can still withdraw funds, and the company insists it will fully recover from the incident.
(With Reuters inputs)
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