Hackers steal $1.5bln from crypto exchange in 'digital heist'

By Al Mayadeen English
Source: Agencies
24 Feb 2025 14:29
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Bybit enlisted top cybersecurity experts to recover the stolen $1.5 billion in what could be the biggest digital heist in history.

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A price chart on the Bybit website for the cryptocurrency Ethereum is seen on a computer screen in New York on Friday evening, on February 21, 2025. (AP)

The cryptocurrency exchange Bybit has appealed to top cybersecurity experts to assist in recovering $1.5 billion (£1.2 billion) stolen by hackers in what is believed to be the largest digital heist in history.

The Dubai-based crypto platform reported that an attacker took control of an Ethereum wallet, one of the most widely used digital currencies after Bitcoin, and transferred its funds to an unidentified address.

Bybit quickly assured its customers that their cryptocurrency holdings remained secure, with its chief executive stating on social media that the company would fully compensate those affected, regardless of whether the stolen funds were recovered.

"Bybit is solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss," Ben Zhou, Bybit’s co-founder and chief executive, posted on X.

Latest Update: Bybit has already fully closed the ETH gap, new audited POR report will be published very soon to show that Bybit is again Back to 100% 1:1 on client assets through merkle tree, Stay tuned. https://t.co/QLa1vOujM6
— Ben Zhou (@benbybit) February 24, 2025

He emphasized that Bybit manages $20 billion in customer assets and could cover any unrecovered funds, independently or through loans from partners.

Spike in withdrawal requests after hack

Bybit, the world's second-largest cryptocurrency exchange by trading volume with over 60 million users, reported a spike in withdrawal requests following news of the hack. Zhou stated that the company had received over 350,000 withdrawal requests from customers, potentially causing processing delays.

Bybit explained that the hack took place during a routine transfer of Ethereum from an offline "cold" wallet to a "warm" wallet used for daily trading. The attacker exploited security controls to move the assets, but Zhou assured that all other wallets on the exchange remained unaffected.

Ethereum's price fell by nearly 4% after news of the hack on Friday but has since rebounded close to its previous levels.

The company has appealed to "the brightest minds in cybersecurity and crypto analytics" to assist in recovering the stolen funds, offering a reward of 10% of the recovered amount, potentially totaling $140 million if the full amount is retrieved.

In a statement, Zhou said, "Bybit is determined to rise above the setback and fundamentally transform our security infrastructure, improve liquidity, and be a steadfast partner to our friends in the crypto community."

According to the report, the hack represented a setback for the crypto industry, which had been recovering in recent months, fueled by Donald Trump's return to the White House and his promises to make the US the "crypto capital of the planet" with more relaxed regulations.