By now you've probably heard of the staggering blow to crypto exchange Bybit, as they confirmed a massive $1.4 billion exploit, making it the largest crypto hack on record

We're now learning some additional details - according to Bybit CEO Ben Zhou, the attacker compromised one of the exchange’s Ethereum cold wallets, siphoning off huge quantities of ETH and stETH by manipulating a single transaction.

Bybit’s CEO says the hacker got hold of the private keys to a specific ETH cold wallet and transferred the funds to an unknown address. Top blockchain analytics groups like ZachXBT and Arkham Intelligence have verified these massive outflows, with Arkham noting that the stolen funds are now being split and sold through multiple addresses.

Is User Money Safe?

Zhou insists that other Bybit wallets weren’t impacted. The platform is still processing withdrawals—99% of user requests have reportedly gone through without a hitch. Bybit is maintaining they have enough liquidity to honor customer withdrawals in full.

Setting a New Record...

This new $1.4 billion hack officially takes the top spot for the largest theft in crypto history. It surpasses both the Ronin Network’s $625 million loss and the $611 million Poly Network exploit, both of which rocked the market in 2022.

Catching the Hacker...

The biggest hack is now offering the biggest reward, up to $140,000,000 (10% of total hacked funds) for anyone who can track down who is responsible.

This is bad news for the hacker, because unless we're looking at a government sponsored action (such as North Korea) you can be sure the hacker bragged about his accomplishment at least within a small circle of fellow hackers - if so, with a reward this size someone is bound to turn on them.

Blockchain researcher ZachXBT was among the first to flag the suspicious outflows. He reports the stolen ETH has been split across 39 different addresses—likely an attempt to hide the funds and evade tracking.

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Author: Adam Lee 
Asia News Desk / Breaking Crypto News

The New York Stock Exchange (NYSE) just applied to the U.S. Securities and Exchange Commission (SEC) to list and trade the Grayscale XRP Trust as an exchange-traded fund (ETF). If approved, it would transform the existing trust into an ETF, opening the door for more investors—from curious retail traders to heavyweight institutions—to get in on the action.

This move could mark a pivotal moment for XRP, the cryptocurrency from Ripple Labs that’s been a hot topic for its ongoing legal showdown with the SEC. Approval would likely boost XRP’s reputation and adoption, weaving it more seamlessly into mainstream financial markets.

Converting the Grayscale XRP Trust into an ETF aims to make investment in XRP easier and more aligned with traditional financial systems. That means the ETF structure could potentially bring in both established and first-time crypto investors, turning a once-controversial asset into something more approachable and SEC-compliant.

It could be months until we find out if an XRP ETF will become a reality. Approval would very likely come with a nice boost to XRP's price, while a denial could go either way, largely depending on if investors increase their exposure to XRP anticipating approval. 

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Author: Justin Derbek
New York News Desk
Breaking Crypto News

US banks have just scored an official OK from the Federal Reserve to jump into bitcoin and other crypto services—so long as they can handle the risks.

Fed Chair Jerome Powell spelled it out at a press conference after the latest Federal Open Market Committee (FOMC) meeting, emphasizing that while the Fed’s main focus is on overseeing banks, it’s cool with them offering digital asset services if they truly understand what they’re getting into.

Powell noted that several banks under the Fed’s supervision are already dabbling in crypto, and stressed that those looking to follow suit would be held to “a little bit higher” standard when it comes to risk management. He also made it clear that the central bank isn’t anti-innovation, pointing to a Financial Stability Oversight Council (FSOC) report on potential crypto risks and saying that the Fed isn’t out to slam the door on new tech.

All this arrives just as Congress is investigating claims of an organized anti-crypto push—often referred to as “Chokepoint 2.0”—aimed at disconnecting digital assets like bitcoin from the traditional banking system.

The Move Received Praise from the Crypto Industry...

Industry leaders are giving the move a big thumbs-up. Coinbase’s chief legal officer, Paul Grewal, praised the decision, saying it simply brings crypto in line with other industries from a banking standpoint. “Banks now have the freedom to manage the risks involved in cryptocurrencies,” he said, adding, “What a change from the last four years!”

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Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News