Bybit Hack: Lazarus Group Hits Crypto Exchange

Bybit, the world's second-largest cryptocurrency exchange, suffered a historic hack on February 21, 2025, resulting in the theft of approximately $1.4 billion worth of Ethereum and staked Ethereum. The attack exploited a vulnerability in Bybit's cold wallet interface, allowing the hacker, identified as North Korea's Lazarus Group, to manipulate transaction approvals and drain funds. Despite the significant loss, Bybit's CEO Ben Zhou assured users of the exchange's solvency and that all other cold wallets remained secure, with withdrawals continuing normally. The hack caused a sharp decline in Bybit's native token, BYB, and a drop in the broader crypto market, affecting major cryptocurrencies like Bitcoin and Ethereum. The incident underscores ongoing security challenges in the crypto space and has heightened concerns over the security of centralized exchanges. Bybit has engaged law enforcement and blockchain analytics firms to trace the stolen funds.