Bybit Suffers Massive $1.5 Billion Crypto Hack Amid Security Concerns

Posted on April 2nd, 2025 at 3:04 PM
Bybit Suffers Massive $1.5 Billion Crypto Hack Amid Security Concerns

From the desk of Jim Eccleston at Eccleston Law

Bybit, a major cryptocurrency exchange, has fallen victim to a devastating security breach, resulting in the theft of approximately $1.5 billion in Ethereum. According to InvestmentNews, the attack, one of the largest in crypto history, targeted the exchange’s cold wallet—typically considered a safer storage method for digital assets.

Bybit’s co-founder and CEO, Ben Zhou, confirmed the breach, stating that attackers bypassed the platform’s security protocols and gained unauthorized access. Early reports suggest that hackers deceived wallet signers through a manipulated user interface and URL, tricking them into approving a malicious transaction. This exploit allowed the attackers to manipulate smart contract logic, ultimately draining the cold wallet’s funds.

InvestmentNews reports that blockchain security firms have been monitoring the movement of the stolen funds. The hackers currently hold over 500,000 ETH, dispersed across multiple wallets to evade detection.

Given the scale of the theft, liquidating such a large amount presents a challenge, as blockchain forensic teams closely track these transactions.

Arkham Intelligence, a blockchain analytics firm, has linked the attack to the Lazarus Group, a notorious hacking entity believed to be affiliated with North Korea. The firm reported that independent blockchain investigator ZachXBT provided definitive proof connecting the attack to the group, including detailed analyses of test transactions and linked wallets used in the exploit.

According to InvestmentNews, Bybit has assured users that withdrawals remain operational and that other cold wallets remain secure. “For immediate sake, we are currently reaching out to our partners to give us a bridge loan,” Zhou said during a live stream. “So, currently, we are not buying [Ethereum]. And even if we did want to buy, it is too big an amount to be moving around.”

Bybit has pledged to compensate affected users and is working with cybersecurity firms and law enforcement to track the stolen funds. However, recovering assets from such sophisticated attackers remains a significant challenge, according to InvestmentNews.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

February 24, 2026
Merrill Lynch Highlights AI Risks as FINRA Urges Greater Oversight of Emerging Technology

Merrill Lynch has warned that the expanded use of artificial intelligence and machine learning introduces material operational, compliance, and cybersecurity risks for advisory firms.

February 23, 2026
Drive Planning Founder Pleads Guilty to $380 Million Ponzi Scheme

Todd Burkhalter, founder and chief executive officer of Drive Planning LLC, has pleaded guilty to wire fraud after admitting he orchestrated a $380 million Ponzi scheme that defrauded more than 2,000 investors.

February 20, 2026
Edward Jones Expands Equity-Style Awards to Thousands More Advisors

Edward D. Jones & Co. has expanded eligibility for its “profits interest” award, extending the equity-style incentive to thousands more advisors, according to a Securities and Exchange Commission filing reviewed by AdvisorHub.