Cryptocurrency theft of £1.1bn could be biggest ever

Cryptocurrency company Bybit recently announced that it had suffered a hacking attack, resulting in the loss of digital currencies worth as much as $1.5 billion (approximately £1.1 billion). This incident could become the largest cryptocurrency theft in history, raising concerns about the overall security of digital assets.

The Dubai-based company's founder assured users that their funds were "safe and secure" and promised to fully compensate all affected users. It is reported that the hackers stole funds from Bybit's Ethereum digital wallets. Ethereum is the second-largest cryptocurrency by market capitalization, following Bitcoin, and this incident highlights the vulnerabilities even in established cryptocurrencies.

Bybit founder Zhou Ben stated that the company is capable of bearing the loss itself or making up for it through loans from partners. Bybit currently holds assets worth $20 billion (approximately £15 billion). The company stated that the hackers exploited a security vulnerability and transferred the funds to an unknown address, triggering an internal investigation to enhance future security measures.

Following the incident, the price of Ethereum fell by about 4% on Friday, dropping to $2,641.41 per coin (approximately £2,090). The scale of this theft exceeds the $620 million (approximately £490 million) Ethereum and USD Coin theft suffered by Ronin Network in 2022, setting a new historical record and raising concerns about security protocols in the crypto space.

Bybit was founded in 2018. It has been reported that former US President Donald Trump and former PayPal CEO Peter Thiel were early investors in the company. Bybit claims to have over 60 million users worldwide and offers trading services for a variety of cryptocurrencies. Zhou Ben added: "Even if the losses caused by this hacking attack cannot be recovered, Bybit remains solvent. All our customers' assets are backed 1:1, and we are able to bear this loss," reinforcing the company's commitment to user security.

The company issued a statement on the X platform stating that it has reported the case to the relevant authorities and is working "quickly and extensively" to identify the hackers. Cryptocurrencies are controversial due to their speculative nature, and many criticize their value as being easily manipulated. Recently, Donald Trump has been criticized for launching his own digital currency, despite claiming he "doesn't know much" about cryptocurrencies, highlighting the complexities and risks associated with this asset class.

Trump's digital currency TRUMP quickly became one of the most valuable cryptocurrencies after being posted on his social media account, but its value has since fallen sharply. This highlights the security concerns in the digital currency market, which had hoped to regain confidence after Trump launched his digital currency. His advisor and Tesla billionaire Elon Musk has also heavily promoted Bitcoin in the past, illustrating the influence of high-profile figures in the crypto market.

In 2014, cryptocurrency exchange Mt Gox filed for bankruptcy after a security breach resulted in the theft of digital currencies worth $350 million (approximately £210 million). In 2019, hackers stole $41 million worth of Bitcoin from the Binance exchange, another major cryptocurrency theft, underscoring the persistent threat of cybercrime in the cryptocurrency industry and the need for robust security measures.