The Article Tells The Story of:
- Biggest Crypto Heist Ever: Hackers stole $1.4 billion in Ethereum from Bybit, manipulating a cold-to-hot wallet transaction.
- North Korea’s Lazarus Group Suspected: Investigators linked the attack to the infamous hacking group behind past crypto breaches.
- Bybit Offers Huge Bounty: The exchange is offering $140 million for help recovering stolen funds.
- Tether Freezes Stolen Assets: $181,000 in stolen USDT has been locked to slow the thieves down.
Bybit Faces Largest Crypto Heist, Promises Full Recovery
Bybit, a leading crypto exchange, suffered a massive security breach on Friday, losing over $1.4 billion in Ethereum and related tokens. This is considered the largest crypto theft ever recorded. The exchange has launched a major recovery effort, including a bounty program offering up to $140 million to on-chain security experts who can help track and retrieve the stolen funds.
Check Out Our Article of $1.4 Billion Stolen in Bybit Hack – Largest Crypto Heist in History Published on February 22, 2025 SquaredTech
Bybit’s Response to the Hack
Bybit CEO Ben Zhou addressed the situation publicly, stating that the exchange is working with top industry professionals to recover the stolen assets. In a statement, Zhou expressed gratitude for the overwhelming support from security experts and blockchain organizations. He reassured users that Bybit is taking steps to strengthen its security measures to prevent future attacks.
Zhou also confirmed that all user withdrawals are functioning normally, and the platform remains fully operational. The company is committed to reimbursing affected users and maintaining liquidity despite the massive loss.
How the Hack Happened
The hackers exploited a vulnerability in Bybit’s multi-signature Ethereum cold wallet, which is typically used for secure storage. They manipulated a transaction moving funds from the cold wallet to Bybit’s hot wallet, which is used for daily operations. This deception masked the real destination of the funds, redirecting them into the hackers’ own accounts.
Security firms and blockchain investigators, including Arkham Intelligence, have been analyzing the attack. On-chain analyst ZachXBT linked the stolen funds to North Korea’s Lazarus Group, a well-known hacking collective responsible for multiple high-profile crypto thefts. Additional evidence has connected wallets used in laundering Bybit funds to previous attacks on exchanges like Phemex and BingX.
Tracking the Stolen Funds
Blockchain security experts have traced the stolen Ethereum across multiple wallets. Bybit, along with major industry players, is actively monitoring these movements to prevent the hackers from cashing out. Paolo Ardoino, CEO of Tether, announced that the company had already frozen $181,000 worth of USDT tied to the stolen Bybit funds. This is a small amount compared to the total loss, but it signals an aggressive effort to limit the hackers’ ability to profit from their crime.
Bybit’s Bounty Program
In a bid to accelerate recovery, Bybit has launched a Recovery Bounty Program. The exchange will reward up to 10% of any recovered funds—potentially reaching $140 million—to those who help trace and retrieve the stolen assets. This initiative aims to mobilize the global blockchain security community to counteract the attackers’ efforts.
Bybit’s team is also working on upgrading security infrastructure and ensuring its liquidity remains strong. Despite the breach, the exchange remains solvent and continues to process withdrawals without delays.
Conclusion
This record-breaking hack has shaken the crypto industry. Bybit’s swift response, including full reimbursement guarantees and a substantial bounty program, demonstrates its commitment to protecting users. As investigations continue, the exchange aims to recover as much of the stolen Ethereum as possible while reinforcing its security to prevent future attacks. The coming weeks will reveal whether Bybit can successfully retrieve its lost assets and hold the hackers accountable.
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