Biggest Crypto Hack in History: Bybit Loses $1.5 Billion in Ethereum

Cybersecurity concerns have once again shaken the crypto industry following one of the largest hacks in history. Bybit, a leading cryptocurrency exchange, fell victim to a cyberattack that resulted in the loss of $1.5 billion worth of Ethereum (ETH).

How Did the Hack Happen?

The breach occurred when hackers exploited a security vulnerability within Bybit’s system. They gained access to the exchange’s hot wallet, allowing them to transfer funds to multiple unidentified addresses. Initial reports indicate that the attackers used sophisticated techniques, including smart contract exploits and phishing attacks targeting Bybit’s internal employees.

Impact on Bybit and Its Users

The massive financial loss not only affects Bybit’s operations but also undermines user trust in the platform. Although Bybit has assured users that their assets remain secure and that the exchange will cover all losses, the incident remains a significant blow to its reputation.

According to Business Insider, on February 21, 2025, the crypto world was rocked by the largest hack in history when Bybit, a Dubai-based exchange, confirmed the loss of approximately $1.5 billion in ETH. The breach occurred during a routine transfer from cold wallets to warm wallets, which are used for daily trading. Hackers managed to manipulate the transaction, seize control of the cold wallet, and transfer around 401,000 ETH to unknown addresses.

Bybit’s Response to the Incident

Despite suffering a significant financial hit, Bybit CEO Ben Zhou reassured users that the company remains solvent and that all client assets are backed 1:1. Zhou also confirmed that withdrawals and other wallets remain unaffected by the attack.

In response, Bybit has partnered with blockchain forensic experts to track the stolen funds. Additionally, the exchange has launched a bounty recovery program, offering up to 10% of the recovered funds to ethical hackers who assist in retrieving the stolen crypto assets.

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