On February 21, 2025, Bybit, a Dubai-based cryptocurrency exchange, experienced a significant security breach resulting in the theft of approximately $1.5 billion worth of Ethereum (ETH). The incident occurred during a routine transfer from the exchange's cold wallet—designed for secure, offline storage—to a warm wallet used for daily operations. Hackers exploited this process, gaining unauthorized access to the cold wallet and transferring 401,000 ETH to an unknown address.
In response to the breach, Bybit's CEO, Ben Zhou, assured clients that the company remains solvent, with all client assets backed 1:1. He emphasized that unaffected wallets and withdrawals continue to operate normally. Bybit 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 of the stolen cryptocurrency.
Blockchain analytics firms Arkham Intelligence and Elliptic have attributed the attack to North Korea's Lazarus Group, a cybercrime organization known for previous cryptocurrency thefts. Elliptic's analysis suggests that the group employed sophisticated methods to launder the stolen assets through numerous blockchain transactions.
This event underscores the vulnerabilities present even in systems designed with enhanced security measures, such as cold wallets. It highlights the necessity for continuous advancements in security protocols within the cryptocurrency industry to safeguard digital assets against increasingly sophisticated cyber threats.
In a significant security breach, Infini, a stablecoin-focused neobank, reported a loss of $49.5 million in USDC due to a cyberattack on February 24, 2025. The attacker exploited administrative privileges to drain funds, subsequently converting them into Ethereum-based assets. Blockchain security firm Lookonchain detailed that the stolen USDC was swiftly exchanged for 49.5 million DAI and then used to purchase 17,696 ETH, which were transferred to a new wallet under close surveillance.
In response, Infini's founder, Christian, has pledged full repayment to affected users and assured that withdrawals will resume promptly.
This incident follows closely on the heels of a massive $1.5 billion hack targeting the cryptocurrency exchange Bybit, marking one of the largest thefts in the crypto industry's history.
These successive breaches underscore the pressing need for enhanced security measures within the cryptocurrency sector to protect user assets and maintain trust in digital financial platforms.
As of February 24, 2025, Bitcoin (BTC) is trading at approximately $95,528, reflecting a slight decrease of 0.485% from the previous close.
Recent market dynamics have influenced this trend. A significant $1.5 billion hack on Bybit's Ethereum wallet has heightened security concerns, contributing to downward pressure on cryptocurrency prices.
Additionally, Bitcoin's price has been consolidating around the $95,500 support level for the past three weeks. Analysts suggest this could indicate potential heightened volatility in the near future.
In the broader financial landscape, U.S. stock futures are trending higher as investors anticipate a recovery from last week's downturn. Key developments include Apple's commitment to a $500 billion investment in U.S. operations and Alibaba's planned $52 billion investment in AI and cloud infrastructure over the next three years.
Overall, Bitcoin's recent price movements are influenced by a combination of security incidents within the crypto space and broader economic developments.
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