In a stunning development that has sent shockwaves through the cryptocurrency world, major crypto exchange Bybit has fallen victim to what experts are calling "the largest crypto theft of all time." On February 21, 2025, hackers successfully orchestrated an attack on Bybit's cold wallet, making off with an astronomical $1.4 billion worth of Ethereum (ETH).
The Attack
The breach occurred through a sophisticated deception where hackers managed to trick Bybit's ETH cold wallet signers into approving a malicious transaction. This maneuver gave them surreptitious control over the wallet, leading to the massive theft that dwarfs previous crypto heists, including the $611 million Poly Network hack of 2021.
Bybit's Response
Despite the severity of the attack, Bybit's CEO Ben Zhou moved quickly to reassure users and the crypto community. In a statement on social media, Zhou confirmed that Bybit remains solvent and emphasized that all client assets are backed 1:1, meaning the exchange can cover the losses even if the stolen funds aren't recovered.
Bybit is Solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss.
— Ben Zhou (@benbybit) February 21, 2025
Industry Reactions
The incident has sparked widespread discussion about security in centralized exchanges. Notably, former Binance CEO Changpeng Zhao offered assistance, while blockchain analytics firm Arkham Intelligence announced a bounty program to help identify the perpetrators, offering 50,000 ARKM tokens as a reward.
The hack serves as a sobering reminder of the ongoing security challenges in the cryptocurrency space, particularly regarding human factors in transaction approval systems. As the investigation continues, this incident will likely lead to renewed focus on enhancing security measures across the crypto industry.
Update: Lazarus Group Connection Identified
In a significant development, renowned on-chain analyst ZachXBT has provided evidence linking the hack to the North Korea-backed Lazarus Group, according to Arkham. The analyst's submission includes comprehensive documentation featuring test transaction analysis, associated wallet tracking, forensic charts, and temporal analysis. This crucial intelligence has been shared with Bybit to support their ongoing investigation.
BREAKING: BYBIT $1 BILLION HACK BOUNTY SOLVED BY ZACHXBT
— Arkham (@arkham) February 21, 2025
At 19:09 UTC today, @zachxbt submitted definitive proof that this attack on Bybit was performed by the LAZARUS GROUP.
His submission included a detailed analysis of test transactions and connected wallets used ahead of… https://t.co/O43qD2CM2U pic.twitter.com/jtQPtXl0C5
This story is developing, and updates will be provided as more information becomes available.