"Bybit's $1.5B Crypto Heist: Bitcoin, Ethereum Plummet"

The crypto market experienced a significant shock on Feb. 21, as the centralized exchange Bybit fell victim to a massive hack, resulting in the loss of approximately $1.5 billion in ETH-related tokens. The incident, which has been dubbed the "largest exploit of all time," sent top cryptocurrencies into a tailspin, with Bitcoin, Ethereum, Ripple's XRP, and Dogecoin all experiencing notable price drops.

Bitcoin, the world's largest cryptocurrency by market capitalization, saw a 3.5% decrease in value, trading at $94,943 at press time. Ethereum, the second-largest cryptocurrency, experienced an even steeper decline, with its price dropping by 4.3% to $2,631. Ripple's XRP and Dogecoin also suffered significant losses, shedding 6.7% and 6.5% of their value, respectively.

The hack occurred when a malicious actor gained control of an Ether cold wallet on Bybit, manipulating a planned transfer and siphoning the funds. Bybit co-founder and CEO Ben Zhou confirmed the security incident on X, noting that the funds were transferred to an unidentified address. Zhou reassured users and the broader crypto industry that Bybit would be able to cover the loss, as all client assets are 1-to-1 backed, and withdrawals remained normal for other cold wallets.

The stolen amount, approximately $1.46 billion, is staggering even by crypto standards. Patrick Scott, a DeFi commentator, noted on X that the hack represents 16% of all previous crypto hacks combined. In comparison, the largest crypto hack of 2024 saw Japanese-headquartered exchange DMM lose Bitcoin worth over $300 million, while Sam Bankman-Fried's FTX was hacked for over $475 million in 2022.

Binance founder Changpeng Zhao offered assistance to Bybit and suggested that the exchange pause withdrawals as a security measure. "Not an easy situation to deal with. Might suggest to halt all withdrawals for a bit as a standard security precaution. Will provide any assistance if needed. Good luck," Changpeng said.

Despite the massive loss, industry experts remain optimistic about Bybit's future. Flashbots strategy head Hasu observed on X that