Bybit has confirmed that hackers executed a "sophisticated attack" on one of its Ethereum (ETH) cold wallets, resulting in the theft of approximately 401,346 ETH, valued at over $1.4 billion.

Bybit CEO Ben Zhou, speaking in a livestream, stated that the stolen funds represent the largest recorded crypto theft to date. Blockchain data from Etherscan indicates that a significant portion of the stolen ETH has already been liquidated through decentralized exchanges.

Despite the breach, Zhou reassured users via X (formerly Twitter) that the exchange’s remaining cold wallets are secure and that all withdrawal services remain operational. He emphasized Bybit's financial stability, noting that client assets are fully backed on a one-to-one basis and that the company can absorb the loss even if the stolen funds are not recovered.

The unprecedented scale of the theft has sparked speculation about potential internal involvement, given the targeted nature of the attack and the rapid liquidation of funds. While Bybit investigates the breach, industry experts and users alike are calling for heightened security measures and greater transparency to prevent future incidents.