Bybit Experiences Historic $1.4 Billion Crypto Heist

Bybit, a prominent cryptocurrency exchange, has been struck by the largest theft in crypto history, experiencing a staggering $1.4 billion loss. The heist was confirmed by Ben Zhou, the platform’s CEO and co-founder, during a livestream on February 22, 2025. The attack involved hackers breaching Bybit’s cold wallets, intended for secure offline storage, to steal approximately 401,346 Ether, which were immediately dispersed across multiple wallets.

The scale of this incident is unprecedented, dwarfing previous crypto thefts, such as the $611 million stolen from Poly Network in 2021 and the $570 million taken from Binance in 2022. Blockchain analytics firm Elliptic has linked this attack to the Lazarus Group, a notorious hacking collective believed to be connected to funding North Korea’s regime. The group has previously targeted various crypto exchanges, leading to significant losses.

Zhou emphasized during the livestream that despite this severe breach, Bybit’s other cold wallets remain secure and normal withdrawals are still being processed. He reassured customers that the exchange has secured a bridge loan from undisclosed partners to cover any unrecoverable losses, aiming to maintain operational stability in the wake of the hack.

Following the announcement, Bybit experienced a surge in user withdrawals as panic set in regarding the platform’s financial stability. However, Zhou reported that outflows have since stabilized and further measures are being put in place to restore user confidence. The ongoing situation has inevitably led to fluctuations in the crypto market, with Ether’s value dropping by 6.7% from its daily high shortly after the news broke.

In the aftermath of the breach, cybersecurity and blockchain experts are calling for enhanced security measures within the cryptocurrency space. Wang Hai, a cybersecurity expert, noted, ‘Exchanges need to rethink their security architectures, particularly regarding cold storage practices to prevent such catastrophic losses in the future.’

As the investigation continues into the specific methods utilized by the hackers, Bybit remains under scrutiny from both users and the regulatory community. The company is working closely with law enforcement and cybersecurity firms to trace the stolen funds as they are moved through various platforms.

With the crypto industry facing increasing threats from sophisticated hacking groups, this historic theft serves as a stark reminder of the vulnerabilities inherent in digital asset management. Investors and exchanges alike are urged to adopt stringent security protocols as the market grapples with the implications of this massive breach.