Cryptocurrency exchange Bybit has reassured users that its reserves remain intact despite the massive $1.4 billion hack on February 21 and a total asset decline exceeding $5.3 billion. Independent auditor Hacken confirmed that Bybit's Proof-of-Reserves (PoR) audit shows that the exchange's assets still exceed its liabilities, ensuring user funds remain fully backed.



Bybit Processes 350,000 Withdrawals Despite Historic Hack

Following the breach, Bybit processed over 350,000 withdrawal requests within 10 hours, completing 99.9% of them by 1:45 AM UTC, according to Bybit CEO Ben Zhou. Despite suffering what he described as “the worst hack possibly in the history of finance”, Zhou emphasized that Bybit's core functions and products remain fully operational, and the team worked overnight to address user concerns.

Industry Leaders Rally to Support Bybit

The broader crypto industry responded swiftly, with major exchanges and industry figures stepping in to provide emergency liquidity support:

  • Binance transferred 50,000 ETH

  • Bitget contributed 40,000 ETH

  • HTX Group co-founder Du Jun provided 10,000 ETH

This collective response highlights the industry's resilience in addressing security incidents.

Largest Crypto Hack in History Linked to North Korea’s Lazarus Group

Blockchain security firms, including Arkham Intelligence and on-chain analyst ZachXBT, have traced the attack to the North Korean state-affiliated Lazarus Group—the same group behind major hacks, including the $600 million Ronin Network exploit.

Security experts believe the attack stemmed from a deceptive transaction targeting Bybit’s Ethereum multisig cold wallet. Hackers manipulated the smart contract logic to gain control, an approach similar to tactics used in previous large-scale breaches, such as:

  • $305M DMM Bitcoin hack

  • $230M WazirX hack

  • $58M Radiant Capital hack

  • $50M Upbit hack

Despite the breach, Bybit's internal systems were not affected, with Zhou stating that the vulnerability lay in Bybit's Ether cold wallet storage provider, Safe.

Bybit Hack Highlights Growing Security Risks for Centralized Exchanges

The incident underscores ongoing security challenges in the crypto space, even for centralized exchanges with strict security protocols. While Bybit has managed to maintain operational stability and user fund backing, the hack accounts for over half of all crypto-related thefts in 2024, bringing total crypto losses this year to $2.3 billion.

As investigations continue, crypto investors and exchanges are being urged to reevaluate security strategies to mitigate risks from increasingly sophisticated cyberattacks, according to Coinelegraph.