Crypto exchange Bybit has rebounded from a major security breach in February 2025, which resulted in the theft of $1.5 billion worth of Ethereum. The attack, attributed to North Korea’s Lazarus Group, exploited vulnerabilities in Bybit’s multi-signature wallet system, allowing hackers to manipulate transactions and siphon funds.
Following the breach, Bybit implemented enhanced security measures, including upgraded cold storage protocols and multi-layer authentication systems. The exchange also launched a recovery bounty program, incentivizing individuals to provide information leading to the retrieval of stolen assets.
Despite the setback, Bybit saw $3.61 billion in inflows in March 2025, surpassing Binance’s $3.545 billion, signaling renewed investor confidence.
Bybit’s CEO, Ben Zhou, assured users that the exchange remains fully solvent, with all client assets backed 1:1. The company has also partnered with blockchain analytics firms to trace stolen funds and prevent future attacks. Bybit’s ability to recover swiftly highlights the growing resilience of centralized exchanges in the face of cyber threats.
The incident has reignited discussions about crypto security regulations, with industry leaders calling for stricter compliance measures to prevent similar breaches. Bybit’s recovery underscores the importance of robust security infrastructure, as exchanges continue to navigate the evolving threat landscape.
Shogun Lin
