Record-Breaking Cryptocurrency Theft Reported
Cryptocurrency firm Bybit has announced that hackers stole $1.5bn (£1.1bn) worth of digital currency from its Ethereum wallet, potentially marking the largest crypto theft in history. The Dubai-based company’s founder, Ben Zhou, assured users that their funds were “safe” and that Bybit would refund any affected users.
The theft occurred when hackers exploited security features and transferred the money to an unidentified address. Following the incident, the value of Ethereum fell by around 4% on Friday, leaving it worth $2,641.41 (£2,090) per coin. This significant theft surpasses the previous record of a $620m (£490m) heist of Ethereum and USD Coin from the Ronin Network in 2022.
Bybit, founded in 2018, holds $20bn (£15bn) in assets and claims to have more than 60 million users worldwide. The company has reported the case to authorities and is working to identify the hackers. Mr. Zhou stated that Bybit is solvent and can cover the loss, as all client assets are backed 1-to-1.
This incident highlights ongoing security concerns within the digital currency market. Cryptocurrencies have faced criticism for their value being based on speculation, making them vulnerable to manipulation. Recent events, such as former US President Donald Trump’s launch of his own digital coin, TRUMP, have also raised questions about the stability and trustworthiness of the crypto market.
The history of cryptocurrency is marked by significant thefts, including the 2014 Mt Gox bankruptcy after $350m (£210m) worth of digital currency was stolen, and the 2019 Binance exchange hack, which resulted in the theft of $41m worth of Bitcoin. These incidents underscore the need for enhanced security measures in the cryptocurrency sector.
