Dubai-based cryptocurrency exchange Bybit has suffered a massive cyberattack, with hackers stealing $1.5 billion worth of digital assets in what could be the largest crypto heist in history.

Bybit's founder, Ben Zhou, assured users that their funds remained "safe" and that the company would fully reimburse any affected customers. The breach targeted the firm’s Ethereum wallet, with Ethereum being the second-largest cryptocurrency by market value after Bitcoin.

Zhou stated that the loss could be covered through Bybit's own reserves or a loan from partners, emphasizing that the company holds $20 billion in assets. The hackers reportedly exploited security features before transferring the stolen funds to an unidentified address.

Following the attack, Ethereum’s value dropped by approximately 4% on Friday, reaching $2,641.41 per coin. If confirmed, this would surpass the previous record crypto theft of $620 million stolen from the Ronin Network in 2022.

Bybit, founded in 2018, has grown to serve over 60 million users worldwide. Reports suggest early investors included former U.S. President Donald Trump and ex-PayPal CEO Peter Thiel. The company reassured customers of its financial stability, stating, "Bybit is solvent even if this hack loss is not recovered. All client assets are 1-to-1 backed, and we can cover the loss."

Bybit has reported the breach to authorities and is actively working to track down the hackers. The incident has reignited concerns over the security of digital currencies, which remain a divisive issue among investors and regulators.

Cryptocurrency-related security breaches have been an ongoing challenge. In 2014, the now-defunct Mt. Gox exchange collapsed after hackers stole $350 million worth of Bitcoin. More recently, in 2019, Binance lost $41 million in another high-profile crypto theft.

The latest Bybit hack comes at a time when the cryptocurrency market is seeking to restore trust, particularly following the launch of Trump's controversial digital coin, TRUMP.

The token surged in value upon its release but has since seen significant declines. Tesla CEO Elon Musk, a vocal advocate of Bitcoin, has also weighed in on crypto market developments in the past.

The Bybit breach underscores the persistent vulnerabilities in the crypto industry, highlighting the urgent need for enhanced security measures as the sector continues to expand.

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