The world of crypto just witnessed its biggest heist yet. Bybit, one of the largest cryptocurrency exchanges, has fallen victim to a staggering $1.5 billion hack. This marks the single largest crypto theft in history, surpassing even the infamous Ronin Network and Poly Network breaches.
The attacker managed to exploit a vulnerability in one of Bybit’s cold wallets—an offline storage system designed to protect assets from cyber threats.
Bybit CEO Ben Zhou confirmed the breach, explaining that the hacker manipulated a planned transfer, redirecting funds to an unknown address. “The signing message was to change the smart contract logic of our ETH cold wallet,” Zhou posted on X. The result? A total loss of Ethereum (ETH) and staked ETH valued at nearly $1.5 billion.
Rob Behnke, co-founder of blockchain security firm Halborn, described this as not just the largest crypto hack ever but potentially the biggest financial heist in history. The incident overshadows the $620 million stolen from Ronin Network in 2022 and the $610 million Poly Network breach in 2021. However, in terms of lost value, the Mt. Gox hack from 2011 still holds the crown, with 850,000 stolen Bitcoins now worth over $81 billion today.
After this news broke, Ethereum saw a sharp drop of 6.7%, while Bitcoin also dipped by 3%. The hack hit Bybit hard, wiping out about 9% of its total assets. Before the attack, the exchange reportedly held $16.2 billion in assets, with an average daily trading volume exceeding $36 billion.
In the wake of the breach, Zhou assured users that Bybit remains operational. “All other cold wallets are secure,” he stated, emphasizing that withdrawals remain open. To mitigate the impact, the exchange has secured around 80% of the lost funds through partner bridge loans.
However, Bybit isn’t just relying on internal measures. The company put out an open call for blockchain forensic experts and security teams to assist in tracing the stolen funds. Their X account urged professionals in the field to collaborate in tracking down the missing assets.
The attack raises serious questions about crypto security. If a major exchange like Bybit, equipped with advanced security protocols, can be breached, what does that mean for the industry at large? While cold wallets are generally seen as safer than hot wallets, this incident highlights that no system is entirely immune.
Bybit’s ability to recover from this historic loss remains to be seen. With billions at stake and the spotlight on their security practices, the exchange now faces its biggest challenge yet. One thing is certain—the world of crypto will be watching closely.
