Bybit hit by largest cryptocurrency theft of nearly $1.5bn
Cryptocurrency exchange Bybit has fallen victim to the largest cryptocurrency theft in history, losing nearly $1.5bn in Ethereum (ETH).
Here's What We Know
A hacker compromised one of the exchange's offline wallets, manipulating a scheduled transfer and sending funds to an unknown address. Bybit CEO Ben Zhou said the hacker altered the logic of the ETH cold wallet's smart contract, allowing him to gain full control of the wallet and transfer all funds.
The incident eclipsed previous record-breaking cryptocurrency thefts, such as the $620 million stolen from Ronin Network in 2022 and $610 million from Poly Network in 2021. The hack also surpassed the infamous Mt. Gox incident in 2011 when 850,000 bitcoins were stolen. According to Bloomberg, Bybit had about $16.2 billion in assets before the hack, with a daily trading volume of more than $36 billion. The theft accounted for about 9% of the exchange's total assets.
After news of the hack spread, the value of ether fell 6.7 per cent and bitcoin lost about 3 per cent from its high. Bybit assured customers that the remaining cold wallets remain safe and that withdrawals are continuing as normal. The exchange has also raised partner loans to cover losses and enlisted the help of blockchain analytics experts to track stolen assets.
Source: the street
