In a significant development for the cryptocurrency industry, Bybit exchange has secured a $239 million emergency loan in Ethereum from competitors Binance and Bitget. This follows what’s being called the largest crypto hack in history, with losses totaling $1.5 billion.
The Hack and Immediate Response
The attack targeted Bybit’s cold wallet system on February 21, 2025. Hackers compromised the exchange’s ETH multisig cold wallet during a routine transfer. The stolen funds moved quickly across multiple wallets and exchanges.
Bybit CEO Ben Zhou acted swiftly to maintain user confidence. He confirmed that other cold wallets remain secure. The exchange continues to process withdrawals normally.
Industry Support and Market Impact
The crypto community’s response shows strong industry solidarity. Binance transferred 47,800 ETH ($127.48 million) while Bitget provided 40,000 ETH ($106 million). These loans help Bybit maintain normal operations.
This incident highlights the evolving nature of crypto security challenges. The quick response from major exchanges suggests a maturing market infrastructure.
North Korean Connection
Security firms Arkham Intelligence and Elliptic link the attack to North Korea’s Lazarus Group. This hack surpasses previous records, including Binance’s $570 million loss in 2022.
Market Implications
The hack’s immediate impact on ETH prices remained limited. However, it raises questions about cold wallet security protocols. Exchanges may need to revise their security measures.
Bybit’s ability to secure quick funding shows the industry’s resilience. The 1:1 backing of customer funds provides additional security assurance.
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Looking Ahead
This incident may accelerate the adoption of enhanced security protocols. Exchanges might implement additional layers of protection for cold wallet operations.
The crypto industry demonstrates its ability to self-regulate and support members during crises. This cooperation could strengthen institutional trust in the sector.
Tags: #Bybit #CryptoHack #Ethereum #ExchangeSecurity #CryptoSecurity
Source: Bitcoinist