Cryptocurrency theft of £1.1bn could be biggest ever

A significant incident has occurred in the realm of digital currencies, as the cryptocurrency firm Bybit, which operates out of Dubai, reported that hackers have stolen a staggering $1. 5 billion, equivalent to £1. 1 billion. This theft could potentially be the largest in the history of cryptocurrency. The founder of Bybit reassured users that their funds are secure and that the company will compensate those affected by this incident. The hackers targeted Bybit's digital wallet that holds Ethereum coins, which is the second most valuable cryptocurrency after Bitcoin. Ben Zhou, the founder of Bybit, mentioned that the company has the means to cover the loss either through its own resources or by obtaining a loan from its partners. Bybit boasts a total asset value of approximately $20 billion. The hackers managed to exploit vulnerabilities in the security system, transferring the stolen funds to an unknown address. Following the theft, the value of Ethereum dropped by around 4% on Friday, bringing its price down to $2,641. 41, or £2,090 per coin. This incident surpasses the previous record for cryptocurrency theft, which was a $620 million heist involving Ethereum and USD Coin from the Ronin Network in 2022. Bybit was established in 2018 and has attracted notable early investors, including former US President Donald Trump and Peter Thiel, the former CEO of Paypal. The company claims to have over 60 million users globally and provides access to a variety of cryptocurrencies. Mr. Zhou further stated that even if the stolen funds are not recovered, Bybit remains solvent and can cover the losses, assuring clients that all their assets are backed one-to-one. The company has reported the theft to the authorities and is working diligently to identify the perpetrators. The rise of cryptocurrencies has attracted many investors, but it has also sparked debate, as critics argue that their value is based solely on speculation, making it easy for their worth to be manipulated. Recently, Donald Trump faced criticism for launching his own digital coin, despite admitting that he does not have much knowledge about cryptocurrencies. This coin, named TRUMP, appeared on his social media accounts prior to his inauguration and quickly became one of the most valuable digital coins, although its value has since plummeted. This situation underscores ongoing security concerns within the digital currency market, which was hoping to regain trust following Mr. Trump's coin launch. His advisor, Elon Musk, who is a billionaire and the owner of Tesla, has also previously praised Bitcoin. In 2014, the crypto exchange Mt Gox suffered a major breach, resulting in the theft of $350 million worth of digital currency due to a security loophole. In 2019, another significant theft occurred when hackers stole funds from the Binance exchange, marking yet another major incident in the world of cryptocurrency.