Bybit, a prominent cryptocurrency exchange, has faced its largest hack in history, with hackers stealing approximately 401,347 Ethereum (ETH), valued at over $1.4 billion. The breach occurred on February 21, 2025, during a routine transfer from Bybit’s cold wallet to its warm wallet.
The attackers employed sophisticated methods, including phishing techniques and social engineering, to gain initial access to internal credentials. They then exploited vulnerabilities in Bybit’s multi-signature authentication process, creating fraudulent approvals that allowed the transfer of assets without raising immediate red flags.
Blockchain investigator ZachXBT and security researchers have identified patterns consistent with previous North Korean state-sponsored hacker operations, including similarities to the Phemex exchange hack in January 2025. If confirmed, this would position North Korea as one of the largest holders of ETH, surpassing holdings by Ethereum co-founder Vitalik Buterin and the Ethereum Foundation.
Bybit has secured bridge loans to cover approximately 80% of the stolen ETH and is working closely with law enforcement agencies to investigate the breach and recover the assets. The company’s security team, in collaboration with leading blockchain forensic experts, initiated a comprehensive investigation.
The breach highlights the escalating challenges exchanges face in safeguarding assets against increasingly sophisticated cyber threats. It also underscores the importance of regulatory compliance and industry innovation in fostering trust and resilience in the global cryptocurrency ecosystem.
In response to the incident, Bybit confirmed that withdrawals remained active, though some users might experience delays due to network congestion. The company’s swift and transparent communication strategy has been praised by industry observers, with CEO Ben Zhou taking immediate ownership of the situation and addressing concerns within 30 minutes.
Source: https://www.forbes.com/sites/digital-assets/2025/02/21/latest-on-the-bybit-record-breaking-14-billion-dollar-crypto-hack