Crypto exchange Bybit has registered in India after settling a fine and facing a significant hack.
Registration and Fine
On February 25, Bybit announced its registration with the Indian government and restored all services to customers in the nation. The registration followed a penalty of 9.27 crore rupees ($1.06 million) for violating the Prevention of Money Laundering Act, imposed by India's Financial Intelligence Unit (FIU). Prior to this, Bybit had suspended its services in the country due to compliance concerns.
Significant Hack
On February 21, 2025, Bybit was hacked by the North Korean-affiliated Lazarus Group, resulting in the theft of over $1.4 billion worth of Ether tokens. This incident occurred four days before the services were restored to Indian customers. Experts have described the attack as evidence of increasingly creative exploits in the crypto sector, revealing security gaps in centralized exchanges.
Consequences for Bybit
The theft and subsequent withdrawals caused Bybit's assets to plummet by more than $5.3 billion on February 22. Nonetheless, third-party audits verified that the exchange's reserves remained higher than its liabilities. Bybit CEO Ben Zhou stated that withdrawals returned to normal speed on February 22.
These events underscore the importance of adherence to international regulations and robust security measures in the crypto sector.
