Bybit, one of the leading cryptocurrency exchanges, faced a major setback recently when hackers managed to steal around $1.4 billion worth of Ethereum from the platform’s offline wallets. This incident, which is being described as the biggest hack in the history of the industry, has sent shockwaves through the cryptocurrency market.
The CEO of Bybit, Ben Zhou, confirmed the theft and reassured users that their assets remain safe. He stated that even if the stolen funds are not recovered, the exchange is solvent and all client assets are 1 to 1 backed, ensuring that any losses will be covered.
In the aftermath of the hack, Bitcoin and Ethereum prices dropped by 3% and 4% respectively. Bitcoin slipped to $95,000 while Ethereum fell to $2,600. This sudden dip in prices is a clear indication of the impact that such security breaches can have on the market.
Bybit has taken swift action in response to the hack, reporting the incident to the authorities and working diligently to identify the hackers. The company has also provided updates to its users, including a live stream where it was revealed that 80% of the exchange’s ETH reserves have been affected. As a result, ETH withdrawals may face delays, prompting users to convert their ETH to other cryptocurrencies for faster withdrawals.
Despite the challenges posed by the hack, Bybit’s team has been working tirelessly to ensure that operations remain smooth. In a recent update, it was announced that the exchange had processed a record-breaking 350K+ withdrawal requests since the hack, with 99.994% of withdrawals successfully completed. Only around 2,100 withdrawal requests are left to be processed, showcasing the team’s dedication to resolving the issue promptly.
Overall, while the hack has undoubtedly been a significant blow to Bybit and the wider cryptocurrency community, the exchange’s proactive response and commitment to safeguarding user assets are commendable. Bybit’s ability to bounce back from this incident and restore normal operations will be closely watched by industry observers in the coming days.