Crypto exchange Bybit has fallen victim to a massive theft, with hackers making off with a staggering 401,346 Ethereum (ETH) worth approximately $1.4 billion from one of the company's offline wallets. This marks the largest known theft of cryptocurrency in history, surpassing previous records.

Bybit's CEO and co-founder Ben Zhou revealed the breach in a livestream, confirming that the hackers had stolen a massive amount of ETH from a cold wallet, which is typically not connected to the internet. The stolen funds were then transferred to a "warm" wallet, which is online. Zhou assured users that the company is "solvent" and can cover the loss, even if the stolen funds cannot be recovered.

The theft has been corroborated by crypto security experts, including Elliptic and ZachXBT, who estimate the stolen ETH to be worth around $1.4 billion. This figure makes it the largest single theft of all time, not just limited to cryptocurrency breaches. In fact, it may even surpass the largest bank robbery of all time, which is the withdrawal of around $1 billion from the Central Bank of Iraq, according to World Finance.

For context, the previous highest crypto breaches were the hacks against the Ronin Network and Poly Network, which resulted in the loss of $624 million and $611 million, respectively, according to data collected by Rekt, a site that tracks web3 and crypto breaches. Bybit's breach has more than doubled these figures, highlighting the severity of the incident.

The incident raises concerns about the security of cryptocurrency exchanges and the measures in place to protect user assets. Bybit, based in Dubai, United Arab Emirates, had an estimated total assets of $16 billion as of last week, according to CoinMarketCap. The company's ability to absorb the loss is a relief, but the breach serves as a wake-up call for the industry to re-examine its security protocols.

The investigation into the breach is ongoing, and Bybit has not provided further details on the attack or the measures being taken to prevent such incidents in the future. As the crypto industry continues to grapple with the implications of this massive theft, one thing is clear: the need for robust security measures has never been more pressing.