Cybersecurity Wake-Up Call — Lessons From Bybit’s $1.5 Billion Breach — CEO at The One shares expert insights
As the CEO of The One, a revolutionary unified cross-chain exchange in the Telegram mini-app designed to simplify crypto trading, I would like to share my expert opinion on the current state of crypto security and essential preventive measures against cyber attacks.
The recent hack of the Bybit Exchange on February 21, 2025, has once again highlighted the significant impact of cyber attacks on the cryptocurrency market.
This incident — which resulted in the theft of approximately $1.5 billion worth of Ethereum (ETH) — stands as the largest digital heist in cryptocurrency history.
Let’s examine some interesting statistics and data surrounding cyber attacks in the crypto space and their consequences.
Scale and frequency of attacks and market impact
The Bybit hack is part of a worrying trend of increasing cyber attacks on cryptocurrency platforms.
In 2024, North Korea-linked hackers alone stole approximately $1.34 billion in 47 incidents, a 102.9% increase from the $660.5 million stolen in 20 incidents in the previous year.
The Bybit hack in 2025 has already surpassed the entire amount stolen by North Korea in 2024 by nearly $160 million.
Source: Chainalysis
The immediate market reaction to the Bybit hack demonstrated the volatility that such incidents can cause, including the following.
ETH dropped 4.2% from $2,828 to $2,708 within minutes of the announcement.A brief rebound of 3.4% followed, bringing the price back to $2,759.Source: CoinMarketCap
The initial drop in the ETH price was followed by a quick rebound, fueled by speculation that Bybit would have to buy back ETH on a one-to-one basis to compensate affected users.
Bybit has secured a bridging loan for 80% of the lost ETH, as clarified by Ben Zhou, co-founder and CEO of Bybit, during a live stream.
He also stated that Bybit had no immediate plans to buy large amounts of ETH on the spot market.
This news caused a rapid shift in market sentiment from bullish to bearish, due to concerns that the hacker would sell the stolen ETH and a general increase in risk aversion among investors.
Types of cyber attacks
While previous major hacks have often targeted vulnerabilities in smart contract code or cross-chain bridges, the Bybit incident represents a shift towards targeting the human element.
The attackers used social engineering tactics to compromise the exchange’s user interface.They manipulated cold wallet signatories to authorize malicious transactions.
This trend is consistent with research showing a shift from traditional security attacks to more sophisticated methods.
In terms of the amount stolen by type of victim platform, 2024 also showed interesting patterns.
In most quarters between 2021 and 2023, DeFi (decentralized finance) platforms were the main targets of crypto hacks.
It’s possible that DeFi platforms were more vulnerable because their developers tend to prioritize rapid growth and getting their products to market over implementing security measures, making them prime targets for hackers.
Although DeFi still accounted for the largest share of stolen assets in Q1 2024, centralized services were the most targeted in Q2 and Q3.
Source: Chainalysis
This shift in focus from DeFi to centralized services highlights the increasing importance of security mechanisms commonly exploited in hacks, such as private keys.
Private key compromises accounted for the largest share of stolen crypto in 2024 — at 43.8%.
Source: Chainalysis
For centralized services, ensuring the security of private keys is critical as they control access to users’ assets.
User education — A critical component
While exchanges bear significant responsibility for security, user education plays a critical role. Comprehensive education initiatives should equip users with the knowledge to do the following.
Create and manage strong, unique passwordsRecognize social engineering tactics and phishing attemptsUnderstand the importance of regular backups
In conclusion, the Bybit hack is a stark reminder of the ongoing security challenges in the cryptocurrency space. As the market continues to grow, so too will the methods used by hackers.
It is imperative that the industry stays ahead of the curve by adopting advanced technologies, fostering collaboration and continuously educating users.
By implementing comprehensive security measures and remaining vigilant, we can work towards creating a safer environment for all participants in the crypto ecosystem.
Generated Image: Midjourney
Originally published at https://dailyhodl.com on March 4, 2025.
Cybersecurity Wake-Up Call – Lessons From Bybit’s $1.5 Billion Breach – The Daily Hodl
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Cybersecurity Wake-Up Call — Lessons From Bybit’s $1.5 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.