Cryptocurrency exchange Bybit has reported a significant security breach resulting in the theft of approximately 401,346 Ethereum (ETH) from one of its offline wallets. The total value of the stolen assets is estimated to be around $1.4 billion, marking it as the largest known crypto theft to date.
Ben Zhou, CEO and co-founder of Bybit, disclosed the details of the incident during a livestream. This breach surpasses previous major thefts, including the hacks of the Ronin Network and Poly Network, which saw losses of $624 million and $611 million, respectively. Experts from the crypto security firm Elliptic and researcher ZachXBT confirm the magnitude of this incident, with Elliptic co-founder Tom Robinson suggesting it could be the largest single theft in history, surpassing even traditional bank heists.
Prior to Bybit’s breach, the largest recorded bank robbery was a $1 billion withdrawal orchestrated from the Central Bank of Iraq. Zhou stated that the hackers managed to gain access to one of Bybit’s cold wallets—an offline storage solution designed to enhance security—and subsequently transferred the funds to a connected “warm” wallet.
In a response to inquiries, Bybit’s spokesperson, Tony Au, reiterated Zhou’s public posts, confirming the company’s solvency and ability to cover the losses despite the inability to recover the stolen assets. Bybit is based in Dubai and was valued at approximately $16 billion as of the previous week, according to CoinMarketCap.
To provide context, throughout 2024, the total amount stolen from crypto through hacking activities was about $2.2 billion, while the figure for 2023 was around $2 billion, according to estimates from blockchain tracking firm Chainalysis. The Bybit incident signifies a troubling escalation in cybercriminal activity within the cryptocurrency sector, highlighting ongoing vulnerabilities even within established platforms.
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