Bybit, a cryptocurrency exchange, disclosed that Ethereum (ETH) was stolen from one of its offline wallets in a “sophisticated attack.”

The crypto industry has been the target of the most recent incident, which is the breach.

According to blockchain analytics firms, Bybit, one of the world’s largest cryptocurrency exchanges, suffered a breach on Friday that resulted in over $1.4 billion in cryptocurrency theft.

It is the most recent incident in an industry grappling with security concerns that pose obstacles to mainstream adoption.

CoinMarketCap estimated that Bybit, which is headquartered in Dubai, United Arab Emirates, had a total asset value of $16 billion as of the previous week.

Bybit CEO Ben Zhou Addresses the Hack: Exchange Remains Solvent

In a post on X, Ben Zhou, co-founder and chief executive of Bybit, reported that an ether cold wallet was compromised on Friday at the Dubai-based crypto exchange. Zhou stated that the perpetrator transferred the ether in the wallet to an unidentified address.

Zhou stated that all client withdrawals from Bybit are considered standard. “Bybit is Solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss,” he stated in a blog post. Bybit is not accessible to investors in the United States.

Representatives of Bybit did not respond to a request for comment from MarketWatch.

Nansen, a blockchain analytics firm, has reported that the hacker stole 401,347 ether, 90,376 stETH, 15,000 cmETH, and 8,000 mETH, which are collectively valued at over $1.4 billion. StETH, cmETH, and mETH are ether tokens that are staked or sealed up to protect the Ethereum blockchains.

Nansen stated that the funds were transferred to a principal wallet and disbursed across 40 wallets.

The crypto industry has been the target of the most recent incident, which is the breach.

Data from blockchain-analysis firm Chainalysis indicates that $2.2 billion in funds were misappropriated from crypto platforms in 2024, representing a 21.1% increase from the previous year.

According to Chainalysis, crypto platforms experienced an annual theft of over $1 billion in digital assets in five of the past ten years.

The value of Bitcoin (BTCUSD) decreased by 1.4% on Friday, reaching approximately $96,986, which is approximately 11.2% below its all-time peak of $109,225, which was achieved on January 20. On Friday, ether experienced a 1.9% decrease in value, reaching $2,675.