Crypto exchange Bybit’s $1.5 billion breach: All you need to know

One of the largest crypto hacks in history, the breach of cryptocurrency exchange Bybit has resulted in the loss of nearly $1.5 billion worth of digital assets.

Ben Zhou, the CEO of the company, confirmed the attack in an X post and stated that a hacker gained control of one of Bybit's offline Ethereum wallets, leading to the theft of funds through a series of transactions.



He also assured that Bybit Hot wallet, Warm wallet, and all other offline wallets were unaffected, with withdrawals proceeding normally.

Bybit is a cryptocurrency exchange serving more than 60 million users globally.

The breach quickly sparked a wave of withdrawals from Bybit as users grew concerned about potential insolvency.

However, Zhou said, “Bybit is solvent even if this hack loss is not recovered, all of the clients' assets are 1-to-1 backed, we can cover the loss.”

According to a CNBC report, analysts at Elliptic have linked the attack to North Korea's Lazarus Group, a state-sponsored hacking collective known for stealing billions of dollars from the cryptocurrency industry.

How did this happen?

The attacker transferred 401,346 ETH, worth approximately $1.1 billion, along with MegaETH (mETH) and staked Ether (stETH-USD) into a new wallet before beginning to liquidate the funds.

Ethereum prices down

Following the news, the prices of Ethereum fell. As of 10:52 PM, the prices were down 2.5% at $2,680.03. The hacker offloaded approximately $200 million worth of staked Ether (stETH) on decentralised exchanges.

Major crypto attacks

In July of last year, WazirX experienced the largest cyberattack on an Indian cryptocurrency exchange, resulting in a loss of $235 million. This hack was also traced back to North Korean hackers. Back then, WazirX cofounder Nischal Shetty had commented, “We’re convinced it could be the (North Korea’s) Lazarus Group.”

Other major attacks include blockchain company Ronin Bridge, which had $615 million stolen from its systems, and Japan’s DMM Bitcoin, which lost $305 million in June 2024. Another Japanese exchange, Coincheck, was hacked for nearly $500 million in 2018, and Japanese exchange Mt. Gox lost 850,000 bitcoins worth $470 million in 2014.

Major crypto attacks

• In July of last year, WazirX experienced the largest cyberattack on an Indian cryptocurrency exchange, resulting in a loss of $235 million.
  This hack was also traced back to North Korean hackers. Back then, WazirX cofounder Nischal Shetty had commented, “We’re convinced it could be the (North Korea’s) Lazarus Group.”

• Another major attack was that of the blockchain company Ronin Bridge, which had $615 million stolen from its systems.
• Japan’s DMM Bitcoin, lost $305 million in June 2024.
• Another Japanese exchange, Coincheck, was hacked for nearly $500 million in 2018, and Mt. Gox lost 850,000 bitcoins worth $470 million in 2014.