Bybit, a major cryptocurrency exchange, was hit hard by a massive hack. Over $1.5 billion in digital assets – mostly Ether – were stolen from their offline storage (cold wallet).
The Heist
The stolen Ether was quickly moved around and sold off on other platforms. This is considered the biggest crypto heist ever, dwarfing previous attacks on Binance and Poly Network. Investigators suspect the Lazarus Group, a North Korean hacking group known for its digital heists, was behind the attack.
The Withdrawal Crisis
Following the hack, Bybit experienced a huge surge in users withdrawing their funds. This put a strain on their resources.
A Helping Hand
To handle the massive withdrawal requests, Bybit received a significant boost from Binance and Bitget. These exchanges transferred over 88,000 Ether (around $239 million) to Bybit to shore up its liquidity. Bitget sent about $106 million, and Binance contributed roughly $127 million. This infusion of funds helped Bybit meet its customer withdrawal demands. Some analysts see this as a vote of confidence in Bybit’s future.
Bybit’s CEO Reassures Users
Bybit’s CEO, Ben Zhou, publicly stated that the exchange remains solvent and that customer funds are fully backed. He assured users that the company can handle the losses even if they can’t recover the stolen assets.
