Bybit Crypto Theft Shocks Industry
The Bybit crypto theft of $1.5 billion (£1.1 billion) on February 21, 2025, may crown it the largest in history, dwarfing past heists. Dubai-based exchange Bybit lost the funds from its Ethereum wallet—second only to Bitcoin in value—when hackers breached security features, funneling cash to an unknown address. Founder Ben Zhou assured 60 million users via X that funds are “safe,” pledging refunds via company reserves or partner loans. With $20 billion (£15 billion) in assets, Zhou insists Bybit remains solvent, claiming all client assets are “1-to-1 backed” despite the staggering loss.
Ethereum’s price slid 4% post-theft, hitting $2,641.41 (£2,090) by Friday’s close, rattling markets. The scale trumps the $620 million (£490 million) Ronin Network heist of 2022, spotlighting crypto’s persistent vulnerabilities. Bybit, launched in 2018 with early backing from Donald Trump and Peter Thiel, reported the breach to authorities, vowing to hunt the culprits “quickly and extensively.” The theft underscores doubts about digital currencies, often criticized for speculative value swings—ironic given Trump’s recent TRUMP coin flop, which soared then crashed after his inauguration hype.
Bybit Crypto Theft Fuels Security Fears
How did the Bybit crypto theft unfold? Hackers exploited security protocols, manipulating a routine Ethereum transfer—a method echoing past breaches like Binance’s $41 million Bitcoin loss in 2019. Zhou’s livestream calm—promising no withdrawal halts—contrasts with the chaos of Mt. Gox’s 2014 collapse after a $350 million (£210 million) theft. That incident bankrupted the exchange; Bybit’s $20 billion war chest aims to avoid such a fate. Yet, the breach dents trust in a market buoyed by Elon Musk’s Bitcoin praise and Trump’s crypto pivot, now shadowed by his coin’s tumble.
Crypto’s allure—60 million Bybit users alone—clashes with its risks. For deeper context, see BBC or Kenkou Land.
Main Body: A Record Breach, A Test of Resilience
The Bybit crypto theft, confirmed February 21, 2025, at 11:52 PM PST, marks a grim milestone. Topping Ronin’s $620 million record, it’s a wake-up call for an industry craving legitimacy after Trump’s TRUMP coin briefly spiked its profile. Launched pre-inauguration, TRUMP soared to top-tier value before plunging—Trump admitted scant crypto knowledge, yet leaned on Musk’s Bitcoin cred. Bybit’s heist, draining Ethereum’s No. 2 coin, tests faith further. Zhou’s “we can cover it” stance leans on a $20 billion cushion, but Ethereum’s 4% dip shows market jitters.
Past hacks haunt crypto’s story—Mt. Gox’s $350 million loss in 2014, Binance’s $41 million hit in 2019. Bybit’s breach, potentially the biggest ever, reignites debate: can digital coins shed their Wild West tag? Critics slam their speculative core, ripe for manipulation, while fans tout freedom from banks. Trump’s administration, tied to Bybit’s roots via early investments, now faces scrutiny—his tariff-driven “External Revenue Service” pitch sidesteps this chaos. Today, February 22, 2025, at 12:02 AM PST, Bybit scrambles to trace hackers, authorities on alert. Resilience hangs in the balance—will crypto weather this storm, or crack under its own weight?
