Shark Tank investor Mark Cuban shrugged off concerns over the $1.4 billion Bybit hack, saying it has "no implications" for the broader crypto market.

However, Cuban raised one key question: "Only question is whether they have insurance,” he tells TheStreet Crypto.

Crypto insurance protects exchanges, businesses, and investors from financial losses due to hacks, fraud, or operational failures. Unlike traditional finance, coverage options remain limited, and many exchanges self-insure or rely on emergency funds. Major policies often cover theft, custodial losses, and cyberattacks, but not all platforms are insured.

The massive exploit on Feb. 21, confirmed by Bybit CEO Ben Zhou, marks the largest crypto hack in history, surpassing the $625 million Ronin Network attack in 2022. Researchers suspect North Korean hackers may have been involved.

A hacker gained control of Bybit’s Ethereum cold wallet, manipulating a transaction that led to the loss of nearly $1.4 billion in ETH and stETH.

"The hacker took control of the specific ETH cold wallet we signed and transferred all ETH in the cold wallet to this unidentified address," Zhou said in a post on X.

Blockchain analytics firms ZachXBT and Arkham Intelligence confirmed the massive outflows, with Arkham reporting that the stolen funds are now being moved and sold across different addresses.

Bybit’s other wallets remain secure, and the exchange has not halted withdrawals, Zhou reassured users.

Handling the aftermath

Zhou took to a live stream on X to calm customer concerns. He revealed that Bybit had secured a "bridge loan" covering 80% of the stolen funds and insisted that all withdrawals would be honored.

"Your money is safe, and our withdrawals are still open," he said. Bybit has already processed 99% of withdrawal requests following the breach.

Despite the scale of the attack, Bybit executives maintain that the exchange remains solvent. "Even today, if all the Bybit clients withdraw, we can give you withdrawals," Zhou said.

However, the exchange does not have enough Ethereum to cover the stolen funds immediately and will not buy ETH to replenish reserves.

"Even if we want to buy, it is too big of an amount to be moving around," he added.

Crypto industry responds

Bitget CEO Gracy Chen announced that her exchange has blacklisted the hacker’s wallets and is blocking transactions from illicit addresses.

"At Bitget, we strongly believe in supporting the community," Chen said, adding that Bitget transferred 40,000 ETH (worth $105 million) to Bybit to help cover losses. "These are Bitget’s own funds, sent for the goodwill of the crypto space.”