A massive security breach has hit cryptocurrency exchange Bybit, resulting in the theft of nearly $1.5 billion in Ethereum (ETH) and staked Ethereum from one of its offline wallets. This incident is being described as the largest cryptocurrency heist ever, and potentially the biggest heist of any kind, according to blockchain security experts.
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Bybit CEO Ben Zhou revealed on X that a hacker manipulated a planned transfer from a cold (offline) wallet, effectively changing the smart contract logic and redirecting the funds to an unknown address. “The signing message was to change the smart contract logic of our ETH cold wallet,” Zhou explained. “The hacker took control of the specific ETH cold wallet we signed and transferred all ETH in the cold wallet to this unidentified address.”
Blockchain security expert Rob Behnke of Halborn described the incident as likely the “largest incident ever, not just crypto,” highlighting the sheer scale of the theft.
This hack surpasses previous record-breaking crypto thefts, including the $620 million Ronin Network breach in 2022 and the $610 million Poly Network hack in 2021. While the infamous Mt. Gox hack of 2011 involved a larger quantity of Bitcoin, its current value would be significantly higher than the Bybit theft.
The stolen funds represent approximately nine percent of Bybit’s total assets, which were around $16.2 billion before the incident. The news of the heist caused a temporary dip in the price of Ether and Bitcoin.
Despite the magnitude of the theft, Bybit has attempted to reassure its users. Zhou stated that “all other cold wallets are secure” and that “all withdraws are NORMAL.” He also mentioned that the exchange has secured around 80 percent of the funding needed to cover the loss through partner bridge loans.
However, Bybit’s X account also posted a request for assistance, seeking collaboration from teams with expertise in blockchain analytics and fund recovery. This suggests that the exchange is actively pursuing all avenues to recover the stolen assets.
The incident underscores the ongoing security challenges faced by cryptocurrency exchanges and the potential for significant financial losses. While Bybit is attempting to project an image of stability, the sheer scale of the heist raises concerns about the security of digital assets and the future of the exchange.
