Dubai-based exchange Bybit has confirmed hackers extracted $1.5 billion worth of Ethereum from its digital wallets, marking what appears to be the largest cryptocurrency theft in history.

The security breach, which targeted Bybit's Ethereum holdings, prompted immediate action from the exchange's leadership. Founder Ben Zhou moved quickly to reassure the platform's 60 million users worldwide, stating that all customer funds remain "safe" and guaranteeing full reimbursement to affected parties.

"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," Zhou confirmed in an official statement. The exchange, which manages approximately $20 billion in assets, indicated it could address the losses either directly or through partner loans.

The incident triggered immediate market reactions, with Ethereum's value declining approximately 4% to $2,641.41 following the announcement. This breach surpasses the previous record set by the Ronin Network hack in 2022, which resulted in losses of $620 million in Ethereum and USD Coin.

Technical analysis reveals that attackers exploited security vulnerabilities to transfer the funds to an undisclosed wallet address. Bybit has notified relevant authorities and launched an extensive investigation to identify the perpetrators.

This security breach adds to a growing list of high-profile cryptocurrency thefts, including the $350 million Mt. Gox incident in 2014 and Binance's $41 million Bitcoin loss in 2019. The incident highlights ongoing security challenges facing digital asset platforms despite technological advances in blockchain security.

The attack comes at a sensitive time for the cryptocurrency sector, which has been working to rebuild trust among institutional and retail investors. Bybit, established in 2018, has emerged as a significant player in the digital asset space, offering trading services for various cryptocurrencies and maintaining a substantial global user base.

Company officials have confirmed they are working "quickly and extensively" with security experts and law enforcement to investigate the breach and strengthen platform security measures. The exchange continues to operate, maintaining normal trading services while addressing the security incident.