How the $1.5B Bybit Hack Could Impact the Crypto Industry
Analysts already say it’s “the single largest known theft of any kind in all time."?
That’s because the recent Bybit cryptocurrency exchange hack, which resulted in a loss of tokens valued at nearly $1.5 billion, completely eclipses the previous most costly crypto scam: the 2022 Ronin Network hack, which resulted in losses totalling $615 million.??
The Bybit attack appears to have been initiated after hackers were granted access to an Ethereum “cold wallet” to complete what seemed to be an innocuous transaction. Once inside the network, the bad guys accessed and quickly transferred more than $1.4 billion worth of holdings.?
Bybit quickly assured its users that no other wallets had been infiltrated and that those users who did incur losses were immediately made whole.?
"Bybit is solvent even if this hack loss is not recovered, all of the clients assets are 1 to 1 backed, we can cover the loss," Bybit CEO Ben Zhou posted on social media.
Hours later, he shared the following:
“Although we have been hit by the worst hack possibly in the history of any … banks, crypto, finance … all Bybit functions and product(s) remain functional, the Whole team had been awake all night to process and answer client questions and concerns. ALL hands on DECK. [R]est assured, we are here with you.”
It remains to be seen how extensive the damage to the Bybit brand is and whether the exchange can even recover.???
Zhou admitted that “The real work has just now started.”
But the damage done isn’t limited to Bybit alone. The enormity of the hack could undermine the faith investors now place in other crypto exchanges — if not the entire crypto industry.
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