Hackers steal $1.4B from Bybit in biggest-ever crypto heist
What's the story
In a shocking development, popular cryptocurrency exchange Bybit has become the victim of the largest crypto theft in history.
As per blockchain analytics firm Elliptic, hackers were able to steal as much as $1.5 billion in digital assets from the platform's cold wallet - an offline storage system meant for security.
The breach far exceeds previous incidents in the sector, setting a new high in cybercrime targeting crypto exchanges.
Theft details
CEO confirms theft of 401,346 ETH
Confirming the breach, Ben Zhou, Bybit's CEO and co-founder, said during a livestream that the hackers had stolen some 401,346 ETH. At the time of the theft, this was worth about $1.4 billion.
The stolen funds, mostly in Ether, were immediately spread across multiple wallets and liquidated through different platforms.
Despite the major breach, Zhou assured users that all other cold wallets are secure and withdrawals are normal at Bybit.
Suspected culprits
Lazarus Group linked to the attack
Blockchain analytics firms Elliptic and Arkham Intelligence traced the stolen crypto as it was moved and swiftly offloaded.
The scale of this hack surpasses previous incidents, including the $611 million stolen from Poly Network in 2021 and the $570 million drained from Binance in 2022.
Elliptic has linked this latest attack to North Korea's Lazarus Group—a state-sponsored hacking collective infamous for siphoning billions from the cryptocurrency industry to fund North Korea's regime.
Damage control
Bybit secures bridge loan amid user withdrawals
Following the breach, Bybit witnessed a spike in withdrawals as users feared potential insolvency.
However, Zhou said that outflows had stabilized and announced that Bybit had secured a bridge loan from undisclosed partners to cover any unrecoverable losses and keep things running.
This move is part of the company's efforts to reassure customers and mitigate the impact of this unprecedented crypto heist.
Market reaction
Heist impacts cryptocurrency market
Notably, the news of the heist affected the cryptocurrency market. Ether's value fell as much as 6.7% from its daily high, while Bitcoin also fell by about 3% from Friday's high.
Despite the market fluctuations and the huge loss, Zhou assured that Bybit remains solvent and can cover the loss even if it fails to recover the stolen funds.