In a significant security breach on February 21, 2025, Dubai-based cryptocurrency exchange Bybit experienced 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 hackers managed to seize control of the cold wallet, transferring 401,000 ETH to an unknown address.
Blockchain analytics firms, including Arkham Intelligence and Elliptic, have attributed the attack to North Korea's Lazarus Group, a cybercrime organization known for previous high-profile cryptocurrency thefts.
In response, Bybit's CEO, Ben Zhou, assured customers of the company's solvency, emphasizing that all client assets are backed 1:1 and that unaffected wallets and withdrawals remain secure. The exchange is collaborating with blockchain forensic experts to trace the stolen funds and has initiated a recovery bounty program, offering up to 10% of the recovered amount to ethical hackers assisting in the retrieval efforts.
This event has intensified discussions about the security of cryptocurrency exchanges and the persistent threat posed by sophisticated hacking groups like the Lazarus Group. It underscores the necessity for enhanced security measures within the crypto industry to protect digital assets from such malicious activities.
