On February 21, 2025, the cryptocurrency exchange Bybit faced a major cyberattack, resulting in the loss of over $1.4 billion in assets.
Details of the Bybit Breach
Initial reports of the hack emerged on platform X, with analysts identifying unauthorized transactions from Bybit's hot wallet. Bybit CEO Ben Zhou confirmed the breach, marking one of the largest thefts in crypto history. Hackers liquidated stolen assets, mainly Ethereum and staked Ethereum, through decentralized exchanges.
Market Reaction to the Incident
Following the news of the hack, Ethereum prices fell by over 1.9%. Research firm Arkham Intelligence estimated that around $200 million of an Ethereum derivative had been sold. Bybit's CEO assured users that the company had enough reserves to compensate affected clients.
Consequences and Industry Impact
The Bybit hack is among the most significant in digital asset history, surpassing the $611 million theft from Poly Network. The incident occurred amid a wave of cyber threats targeting the crypto sector in February, including social media breaches related to Solana-based Jupiter exchange and former Malaysian Prime Minister Mahathir Mohamad.
The Bybit incident highlights the growing threat of cyberattacks in the cryptocurrency industry, necessitating improved security measures to protect user assets.
