Crypto exchange Bybit loses $2.4bn in hack

Dubai-based cryptocurrency exchange Bybit has reported hackers stole $US1.5bn ($2.4bn) worth of digital assets in the largest crypto theft in industry history.

US regulation of crypto is becoming less strict. Picture: Justin Tallis/AFP

Dubai-based cryptocurrency exchange Bybit has reported hackers stole $US1.5bn ($2.4bn) worth of digital assets in the largest crypto theft in industry history.

Bybit CEO and founder Ben Zhou discussed the hack during an online chat, assuring users that “your funds are safe”. The company added on X: “We’ve launched a refund program for users affected by today’s hack. Bybit is committed to protecting our community, and we will fully reimburse all impacted users.”

According to the company, attackers exploited security protocols during a transaction, enabling them to transfer the assets to an unidentified address.

This compromised an offline “wallet” that stored ethereum, and the hackers stole 400,000 ethereum on Friday morning.

Ethereum is the second-largest cryptocurrency by market value after bitcoin, and was worth $US2641.41 on Saturday after the hack, down nearly 4 per cent.

While the perpetrators remain unknown, the scale of the theft far exceeds the previous record: a $US620m heist of ethereum and USD Coin from the Ronin Network in 2022, allegedly carried out by North Korea’s Lazarus group.

Founded in 2018, Bybit counts prominent Donald Trump ally Peter Thiel among its early investors, according to Pitchbook.

Separately, US crypto giant Coinbase said the Securities and Exchange Commission had agreed to drop its 2023 lawsuit against the company, signalling that the Trump administration is delivering on a campaign promise to reduce oversight of the ­industry.

The lawsuit from Wall Street’s main watchdog had alleged that Coinbase was selling unregistered securities through its cryptocurrency trading platform.

The SEC has argued for years that certain digital currencies are financial securities, like stocks or bonds, and are therefore subject to its supervision.

The crypto community rejected the SEC’s argument bitterly, and many players, including Coinbase’s CEO, financially backed Donald Trump in last year’s presidential election.

AFP