Dubai-based cryptocurrency exchange Bybit has reported a staggering $1.5 billion (£1.1 billion) theft in what could be the biggest crypto heist in history. The hackers exploited security vulnerabilities in one of Bybit’s Ethereum cold wallets, transferring over 400,000 ETH to unidentified addresses.

Bybit's Response & Assurances

Bybit's founder, Ben Zhou, assured users that their funds are safe, emphasizing that all assets are fully backed 1:1. He stated that Bybit remains solvent and is arranging a bridge loan from partners to cover any losses. The company also confirmed that it has reported the incident to authorities and is working with blockchain security experts to track the stolen funds.

Market Impact & Ethereum Price Drop

Following the announcement, Ethereum’s value dropped by around 4%, falling to approximately $2,641.41 (£2,090) per coin. The breach has raised concerns over crypto exchange security, especially for platforms handling large amounts of digital assets.

Biggest Crypto Theft to Date

This heist surpasses the $620 million (£490 million) theft from the Ronin Network in 2022, making it the largest crypto theft ever recorded. Similar incidents have occurred in the past, such as:

1. 2014: Mt. Gox lost $350 million (£210 million) due to a security loophole.
2. 2019: Binance suffered a $41 million (£32 million) Bitcoin theft.

Rising Security Concerns in the Crypto Industry

The attack highlights ongoing security risks in the cryptocurrency industry, despite efforts to build trust among investors. Bybit, which manages over $20 billion (£15 billion) in assets, says it is strengthening its security measures to prevent future breaches.

The investigation is ongoing, and Bybit has urged users to stay updated via official channels.