Bybit loses nearly $1.5 billion in crypto hack—What we know so far
Bybit has found itself at the centre of a financial storm. Hackers made off with nearly $1.5 billion worth of Ethereum (ETH) from the platform’s cold wallet, triggering a mass panic among users. The fallout was immediate: over $4 billion in additional withdrawals followed, bringing the total outflow to a jaw-dropping $5.5 billion.
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Blockchain analysts quickly pointed fingers at the North Korean hacking syndicate, Lazarus Group, notorious for targeting digital asset platforms. CEO Ben Zhou took to social media and a live X Spaces session to address the crisis, reassuring users: “Bybit is solvent even if this hack loss is not recovered. All client assets are 1:1 backed, and we can cover the loss.”
The Race to Secure Withdrawals
The security breach prompted a swift reaction from Bybit’s internal teams. Zhou recounted his immediate call for “all hands on deck” to facilitate withdrawals and manage user concerns.
A major complication arose when Safe—a decentralised custody protocol—temporarily shut down its smart wallet functionalities to investigate potential vulnerabilities. Safe’s move left Bybit unable to access $3 billion in USDT reserves stored in its cold wallets. “We had to develop new software, manually verify signatures, and work through the night to process withdrawals,” Zhou revealed.
Despite these challenges, Bybit managed to stabilise its
