Dubai-based crypto exchange Bybit reported that hackers stole up to $1.5 billion worth of digital assets on Friday. A hacker managed to transfer the assets to an unknown address, triggering widespread concern, especially for the crypto community.
Bybit Crypto Exchange Hacked in Token Form
On February 21, 2025, Bybit, a prominent cryptocurrency exchange, experienced a significant security breach resulting in the theft of approximately $1.5 billion in digital assets, primarily Ethereum. The incident occurred when an attacker manipulated a routine transfer between Bybit’s cold and warm wallets, gaining control of an Ethereum cold wallet and transferring the funds to an unidentified address.
Cold wallets and multisig wallets are at the center of every major hack in the crypto world. Bybit uses multisig wallets to add a layer of security to protect user funds held by the exchange. Specifically, these wallets will require multiple approvals to execute transactions from different people.
Because hackers transfer assets to multiple addresses quickly, it makes tracking funds difficult. This hack is unlike other hacks. So the hackers have not sent the Tornado Cash crypto mixer funds to erase traces on the blockchain and mix the funds.
Bybit Confirms Breach
Bybit CEO Ben Zhou confirmed a security breach related to the hack of the digital asset on Friday, saying that only one ether wallet was affected. The rest of the wallets are safe and withdrawals are still working as usual.
Ethereum, the second-largest cryptocurrency after Bitcoin by market value, was worth $2,641.41 on Friday after the hack, down nearly 4%.
“All client funds are safe and operations will continue as usual without any disruption,” he said to reassure users. Bybit serves more than 60 million users worldwide and holds $20 billion in client assets. The company said it is solvent and has the necessary reserves to cover the losses.
North Korean Hackers Suspected
According to blockchain researchers and security analysts, hackers from North Korea are likely responsible for the attack. The research firm Arkham Intelligence and on-chain analyst ZacXBT reported that the stolen funds had been transferred to a new address, where the funds were liquidated.
Furthermore, according to blockchain security firm Elliptic, this hack has surpassed the previous record. For the previous record of $ 611 million, stolen from Poly Network in 2021. Rob Behnke, a security expert described as possible, this hack as ‘the largest financial cyberattack ever’.
Cryptocurrency Prices Plunge
Investors got the good news that cryptocurrencies on Friday after 8 am, namely Coinbase, the largest crypto market in the United States reached a settlement with US regulators. The agreement drops a lawsuit that has burdened the industry for years.
However, the crypto market experienced a new crisis in just a matter of hours. Around 11 am, Bybit said it had been hacked and industry analysts estimated the hack resulted in losses of nearly $ 1.5 billion. This caused the price of Bitcoin, Ether, and other major cryptocurrencies to plunge. Coinbase’s stock price also ended the day down 8%.
The contrast illustrates the state of crypto in 2025. Even as President Trump embraces the industry, it remains a wild west of finance that is prone to theft and fraud.
Policy changes in Washington are poised to encourage investors to try crypto for the first time. But the inductees are still struggling to police and prevent criminal activity, such as the ongoing hack.
In a livestream, Zhou reassured users that the company had secured 80% of the funds needed to cover losses, via a bridge loan. The company is seeking legal action against the hackers to recover the stolen assets.
Crypto exchange Bybit hacked is a reminder that crypto remains a kind of international free market, despite its growing influence in politics. Even for the most seasoned investors, it’s still possible to suffer major losses.
