On February 23, 2025, the Bybit cryptocurrency exchange announced it had been hacked, resulting in an estimated loss of $1.5 billion. The incident, which may be the largest cryptocurrency theft in history, involved the theft of approximately 401,000 Ethereum during a routine transfer from a cold wallet to a warm wallet.
- Bybit exchange hacked, estimated loss $1.5 billion.
- Hack may be largest in crypto history.
- 401,000 Ethereum stolen during wallet transfer.
- Bybit assures clients' assets are secure.
- Recovery bounty program launched for stolen funds.
- Over $2.2 billion stolen from crypto in 2024.
The hack occurred as Bybit was conducting a standard transfer from an offline cold wallet to a warm wallet used for trading. CEO Ben Zhou explained that the transaction was manipulated through a sophisticated attack that disguised the signing interface, allowing hackers to take control of the cold wallet and redirect the funds to an unknown address. Bybit stated that it remains solvent and can cover the losses, as all client assets are backed 1 to 1.
Following the incident, Bybit experienced a surge in withdrawal requests, successfully processing over 580,000 withdrawals since the hack. The company is collaborating with blockchain forensic experts to trace the stolen funds. Research firm Arkham Intelligence reported that the stolen Ethereum has begun moving to new addresses where it is being sold.
In response to the theft, Bybit announced a “recovery bounty program,” offering rewards of up to 10% of the recovered amount to ethical cybersecurity experts who assist in retrieving the stolen cryptocurrencies. In 2024, over $2.2 billion was reported stolen from various crypto platforms, highlighting ongoing security challenges in the industry.
The Bybit hack marks a significant event in the cryptocurrency landscape, emphasizing the need for enhanced security measures. As the company works to recover the stolen funds, it reassures clients of its financial stability and commitment to safeguarding assets.
