Massive Bybit Hack: What Happened and How to Safeguard Your Crypto
- Andrey Povolnov
- Oct 26
- 1 min read
Summary:
Dubai-based Bybit suffered the largest crypto exchange hack in history, losing $1.5 billion in Ethereum (ETH) to North Korean hackers. The sophisticated attack exposed systemic vulnerabilities in wallet management and staff security practices.
Date: February 21, 2025
Category/Tags: Security, Exchange, Bybit, Asset Protection
On February 21, 2025, Bybit, one of the world’s largest exchanges, experienced an unprecedented breach: hackers stole 400,000 ETH, worth over $1.5 billion. The attack exploited a supply chain compromise in Bybit’s multisignature transfer system, targeting its cold-to-warm wallet process. Hackers socially engineered a developer working for Safe{Wallet}, the multisig platform, and compromised his workstation. By hijacking AWS session credentials, they injected malicious code into wallet management software, tricking Bybit staff into signing fraudulent transfers. Funds were rapidly laundered via crypto mixers and hard-to-trace wallets linked to the North Korean Lazarus Group.
This incident demonstrates several key lessons for exchanges and investors:
Even “cold storage” is vulnerable if the approval process is compromised.
Social engineering and supply chain attacks are now the #1 threat vector.
Automatic, instantaneous approval of large transfers adds risk.
Immediate laundering of assets makes recovery exceptionally difficult.
Official Source:
Executive Consulting Hub Comment:
The Bybit hack is a wake-up call: enterprise-grade crypto security demands robust multi-layer controls, reliable device hygiene, and staff security training.
EXCH specializes in configuring hardware wallets, designing resilient backup schemes, planning multi-location custody, and giving strategic guidance on regulatory best practices.
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