A company that is changing the way the world mines bitcoin

Coinpaprika 2025-02-22 10:37:56

Bybit Faces $1.5B Hack, Loses $5.2B, But Wins Praise for Crisis Response

Bybit’s crisis response has won industry-wide praise after a $1.5 billion hack that led to a $5.2 billion drop in reserves within 24 hours. Despite the massive setback, the exchange acted quickly to secure $172.5 million in emergency loans and continued operations without freezing withdrawals . According to DeFiLlama, Bybit’s reserves shrank sharply as over 350,000 withdrawal requests flooded the platform. However, the exchange still holds more than $11.4 billion in assets. CEO Ben Zhou reassured users that all withdrawal requests had been processed within 12 hours. He stated that the team worked tirelessly to clear the backlog, ensuring normal operations resumed without disruption. The attack, which occurred on February 21, exploited a vulnerability in Bybit’s Ethereum multisig cold wallet. The breach allowed unauthorized transactions, transferring funds from a cold wallet to a warm wallet. Despite the severity of the situation, Bybit chose to keep withdrawals open, avoiding mass panic. Industry experts have applauded Bybit’s response, highlighting its speed, transparency, and efficiency. Casey Taylor of Dragonfly called it a “masterclass in crisis communication,” noting that Zhou addressed the issue publicly within 30 minutes, stopping rumors from spreading. Guy Young, founder of Ethena Labs, described the crisis management as an industry benchmark. He emphasized how Bybit’s leadership took immediate responsibility and provided clear information to users. Austin Federa of Double Zero added that traditional crisis strategies often fail in Web3, making Bybit’s response a valuable lesson for others. Blockchain analysts at SpotOnChain reported that Bybit secured emergency funds from Binance, Bitget, and MEXC within seven hours. This move helped stabilize the exchange’s financial position and rebuild trust among users. Security experts later confirmed that North Korea’s Lazarus Group was behind the attack. Recovering the stolen funds remains challenging, given the sophisticated methods used by the notorious hacking group. Bybit’s handling of the crisis has strengthened its reputation, proving that swift action and open communication can help an exchange weather even the most severe security breaches.