On February 21, 2025, cryptocurrency exchange Bybit suffered the largest digital asset theft in its history, with hackers stealing approximately $1.4 billion.
How the Hack Happened
Hackers targeted Bybit's cold wallet, which is used for offline storage of cryptocurrencies. According to reports, the hack occurred during a routine transfer of Ethereum (ETH) from a cold wallet to a hot wallet. Exploiting signing mechanisms allowed hackers to alter transaction details and redirect funds. The stolen ETH was rapidly moved across multiple wallets and laundered through different protocols.
Immediate Aftermath
The attack's scale caused panic among Bybit users, with over 350,000 rushing to withdraw their assets. Bybit CEO Ben Zhou assured clients of Bybit's solvency and revealed the company's ability to cover losses. Bybit has also secured bridge loans to fulfill withdrawal requests.
Suspects and Investigation
Investigations in partnership with Arkham Intelligence, Elliptic, and the researcher ZachXBT identified the notorious Lazarus Group, a North Korean cybercrime group, as the main suspect. Heightened regulatory scrutiny is anticipated for Bybit, especially in Singapore, where it is headquartered.
The Bybit incident raises critical concerns about the security of crypto platforms, highlighting the need for improved security measures and real-time monitoring to protect user assets.
