$ETH

On February 21, 2025, Dubai-based cryptocurrency exchange Bybit experienced a significant security breach, resulting in the theft of approximately $1.5 billion worth of Ethereum. The incident occurred during a routine transfer from a cold wallet to a warm wallet, when attackers manipulated the transaction interface to gain control over the cold wallet, transferring around 401,000 ETH to an unknown address.

In response, Bybit's CEO, Ben Zhou, assured clients that the exchange remains solvent, with all client assets fully backed. Unaffected wallets and withdrawals continue to operate normally, and over 350,000 withdrawal requests were processed promptly following the disclosure of the hack.

Blockchain forensic experts are actively tracing the stolen funds, which have been moved to new addresses. Preliminary investigations suggest that North Korea's Lazarus Group may be responsible for the attack, though official confirmation is pending.

This event has had a notable impact on the cryptocurrency market, with Ethereum's value dropping by 4% following the hack. The incident underscores the ongoing security challenges within the crypto sector, as 2024 saw $2.2 billion stolen from various platforms.

Bybit is collaborating with authorities and blockchain analytics firms to recover the stolen assets and enhance security measures to prevent future breaches.

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Bybit should strengthen its security measures to prevent such hacks in the future. A major breach like this exposes vulnerabilities that need immediate attention. Here are some key areas Bybit should focus on: