🚨 $1.4B Bybit Exchange Hack Exposes Centralized Vulnerabilities 🚨
A wake-up call for Web3 security.
Here’s what happened and why DePIN is the future. 🧵
1/ Feb 21, 2025 – Bybit suffers the largest Web3 breach in history, losing $1.4 billion in Ether (ETH) and staked Ether tokens.
2/ Reportedly, attackers used a sophisticated phishing scheme to manipulate a multisig cold wallet transaction through UI spoofing—tricking signers into approving a fraudulent transfer.
3/ While Bybit’s systems remained operational, this wasn’t a tech failure—it was a failure of centralized security.
Human oversight remains a weak link, exposing CEXs to social engineering attacks.
4/ The hack reignites the debate:
Custodial vs. Self-Custody.
🔹 CEXs = centralized control & human vulnerabilities
🔹 Self-custody & decentralized security = trustless & resilient
5/ CEXs are prime targets because they rely on human-controlled security layers.
Key weaknesses:
🔹 Phishing & social engineering
🔹 Single points of failure
🔹 Human errors in multisig approvals
Web3 security breaches soared 31.6% in 2024, with $2.36B lost across 760 on-chain incidents (CertiK).
6/ So, what’s the alternative?
Decentralized Physical Infrastructure Networks (DePIN) for cybersecurity.
Instead of trusting human signers, DePIN distributes security validation across a decentralized network.
7/ David Carvalho, CEO of Naoris Protocol:
"The Bybit hack exposes the systemic flaws of centralized security. Web3 cannot keep inheriting Web2’s vulnerabilities. A decentralized world needs decentralized security. The time for DePIN is now."
8/ DePIN eliminates single points of failure by distributing security responsibilities across a network.
This trustless, automated approach prevents human error from being exploited.
9/ Could Naoris Protocol have prevented the Bybit hack?
Yes.
With real-time decentralized validation, a centralized UI tampering attack would not be possible.
The fraudulent transaction could have been flagged before execution, preventing exploitation.
This approach eliminates the single point of failure that enabled UI tampering and removes the reliance on blind trust in human signers.
10/ Naoris Protocol is leading this shift.
📌 Post-Quantum DePIN Testnet for CyberSecurity & Digital Trust
✔️ 500K+ users
✔️ 2.5M+ transactions processed in week 1
11/ Despite the breach, Bybit's swift, transparent and professional response is praiseworthy.
CEO Ben Zhou assured users that all client assets are backed 1:1 and that the exchange remains solvent and operational, even if the stolen funds are not recovered.
This proactive communication has been crucial in maintaining user trust during the crisis.
12/ The Bybit hack proves one thing: Centralized security isn’t enough.
To build a resilient Web3, we must embrace decentralized cybersecurity solutions.
The future is here. 🚀
