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New Delhi: Bybit, a Dubai-based cryptocurrency exchange platform faced what people are calling “the largest hack in crypto history”. The hackers stole approximately $1.5 billion in Ethereum (ETH) from the platform’s cold storage, causing widespread panic among users, the Economic Times reported. The repercussions of this hack were swift as more than $4 billion in extra withdrawals followed, raising the total outflow to an astonishing $5.5 billion. Blockchain analysts suspect that North Korea’s Lazarus Group is the one behind this crisis, a report by Economic Times stated. The group is infamous for targeting digital asset platforms. Bybit CEO Ben Zhou was quick to resolve this crisis. Zhou initiated a live X Spaces session to address this emergency and reassured, “Bybit is solvent even if this hack loss is not recovered. All client assets are 1:1 backed, and we can cover the loss.” Industry observers praised Zhou’s crisis management by saying, “Bybit just delivered a masterclass in crisis communications after experiencing the largest hack in crypto history,” a user shared on X. The security breach on the cryptocurrency platform triggered a rapid response from Bybit’s internal teams. Zhou immediately followed with an urgent request for “all hands on deck” to assist with withdrawals and address user issues. Bybit’s openness, effective and quick communication, and capacity to handle withdrawals helped ease the panic among the masses. When Bybit’s Safe briefly disabled its smart wallet features, the platform lost access to the $3 billion in USDT reserves held in its cold wallets to which the company has to “develop new software, manually verify signatures, and work through the night to process withdrawals,” Zhou stated. However, Bybit was still able to stabilise its operations and successfully withdraw “about 50% of all exchange funds” and moved the funds to another storage solution. As this crypto crisis shook the crypto community, many suggested reversing the Ethereum blockchain in an effort to recover lost money. Even Zhou admitted to considering this and other possibilities by engaging with “Vitalik [Buterin] and the Ethereum Foundation”, but, this idea posed some challenges as well. Rolling back Ethereum was improbable because of the blockchain's decentralised characteristics. Zhou said that if this were to be considered, “It’s not a one-man decision. It should be up to the community.” Following this unforeseen breach, Ehereum’s price dropped by 4% in the cryptocurrency market. Bybit posted on X “We’re close to 100% on our ETH reserves, and deposits & withdrawals are back to normal.” “We know where our funds have gone, and we’re committed to turning this experience into an opportunity to strengthen the ecosystem. Initiatives are coming to help the crypto space grow stronger,” it added. This incident brings to light the unpredictability and vulnerability of the crypto market, so much so that even the biggest players in the industry can become targets of advanced cyber criminals. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Budget 2025, Companies,Business Economy and around the world.
