• On Friday, Bybit, a prominent cryptocurrency exchange, announced it had been the target of a significant hacking incident.
• According to Bybit’s CEO, Ben Zhou, the estimated losses from this breach could reach up to $1.5 billion.
• Experts suggest this could potentially be one of the largest cryptocurrency hacks in history. Here’s what we know so far.

Based in Dubai, the Bybit cryptocurrency exchange reported on Friday that it had experienced what could be the largest theft in the crypto space, with hackers absconding with approximately $1.5 billion worth of Ethereum.

During a livestream, CEO Ben Zhou detailed that the hack affected around 401,000 Ethereum and took place during a regular transfer from a cold wallet—an offline storage method—to a warm wallet used for routine trading activities.

“Regrettably, the transfer was compromised through a complex attack that disguised the signing interface, showing the legitimate address while altering the foundational logic of the smart contract,” Bybit stated in a message on X.

As a result, the hacker gained control of the cold wallet and successfully shifted its assets to an unidentified address.

Zhou assured users that “Bybit remains solvent even if the funds lost in this hack are not recovered; all client assets are maintained on a 1:1 basis, enabling us to cover the loss.” He further noted that the company’s other wallets and withdrawal operations had not been impacted. Bybit currently manages over $20 billion in assets.

The incident triggered a spike in withdrawal requests, prompting Bybit to announce on Saturday that it had successfully processed more than 580,000 withdrawals post-hack.

The company is collaborating with blockchain forensic experts to trace the misappropriated funds.

On Friday, research firm Arkham Intelligence indicated on X that the stolen assets had started moving to new addresses for potential sale.

On Saturday, Bybit revealed the launch of a “recovery bounty program” aimed at helping to retrieve the stolen cryptocurrencies.

The initiative includes a reward of up to 10% of the recovered amount for “ethical hackers and cybersecurity experts actively involved in retrieving the stolen digital assets.”

A report from blockchain analysis firm Chainalysis noted that in 2024 alone, over $2.2 billion was taken from various cryptocurrency platforms.

Business Insider has reached out to Bybit for further comments on the matter.