On February 21, 2025, the cryptocurrency exchange Bybit became the victim of an unprecedented hacker attack, resulting in the theft of about $1.4 billion worth of digital assets.
How the Hack Happened
The attack targeted Bybit’s cold wallet, a secure offline storage used to protect users’ assets from online threats. Hackers exploited vulnerabilities during a routine transfer of Ethereum from the cold wallet to a warm wallet. They gained access to Bybit’s signing mechanism, allowing them to alter transaction details undetected. Although a legitimate address was displayed, the contract’s logic was altered.
Immediate Aftermath: Panic and Withdrawals
The scale of the attack triggered panic among Bybit users. Over 350,000 customers rushed to withdraw their assets. However, Bybit's CEO, Ben Zhou, assured users that their funds remained secure.
Who's Behind the Attack?
Investigation findings point to the Lazarus Group, a North Korean state-sponsored hacking organization known for its sophisticated cyberattacks on cryptocurrency platforms.
The Bybit hack raises serious concerns about the security of even the most advanced cryptocurrency platforms. The exchange is actively working on improving its security measures to prevent such incidents in the future.
