A Giant Hack in Crypto Leaves Investors Reeling
Hours after Coinbase announced a deal with U.S. regulators to drop a lawsuit, another major cryptocurrency exchange, Bybit, reported a potentially record-setting theft of nearly $1.5 billion.
The hack came just hours after the crypto market experienced a brief surge of optimism due to the announcement. However, this was short-lived as prices plummeted following the news.
Industry analysts estimate that the loss at Bybit is the largest theft in crypto history, dwarfing a previous record of $611 million. The impact on investors is significant, with millions losing money on their investments.
The incident highlights the continued struggles of the cryptocurrency industry to police and prevent criminal activity. Despite growing influence in politics, crypto remains a chaotic market where even experienced investors can suffer extreme losses.
“The guys who are really smart about these issues just lost $1.5 billion,” said Corey Frayer, former crypto policy expert at the Securities and Exchange Commission. “So how do we expect regular Americans to safely use these products?”
This incident follows a series of high-profile hacks in the industry, including the recent plummeting of a memecoin promoted by the president of Argentina, Javier Milei. The spread of these high-risk cryptocurrencies has raised concerns among executives about their potential impact on the industry.
In response to the hack, Bybit’s chief executive, Ben Zhou, assured customers that the company would cover the loss and maintain its solvency. However, crypto forensics experts estimate the total loss could be closer to $1.5 billion.
The incident has sent shockwaves through the market, with the price of Bitcoin plummeting from around $100,000 early Friday to just over $95,000 that evening. Other cryptocurrencies have also fallen significantly.
This latest development in the crypto world underscores the need for greater regulation and oversight to protect investors.
Source: https://www.nytimes.com/2025/02/22/technology/crypto-exchange-bybit-hack.html