Bybit Loses $1.5 Billion in Crypto Hack Linked to North Korea

In February 2025, cryptocurrency exchange Bybit suffered a massive security breach, losing $1.5 billion in Ether to North Korean hackers. The attack stemmed from a vulnerability in Safe, a free storage software used by Bybit to manage digital assets. Hackers infiltrated Safe’s system, compromised a developer’s computer, and inserted malicious code that tricked Bybit’s CEO, Ben Zhou, into approving a fraudulent transfer.

The breach caused panic in the crypto market, leading to a 20% drop in Bitcoin’s price and nearly $10 billion in withdrawals from Bybit. Despite prior warnings about Safe’s security gaps, Bybit had not transitioned to a more robust system. Zhou acknowledged the oversight and vowed to enhance security measures. Meanwhile, competing exchange Bitget provided Bybit with $100 million in emergency funds to stabilize operations.

U.S. authorities identified the Lazarus Group, a North Korean state-sponsored hacking syndicate, as the culprits. The attack reignited concerns over crypto security, highlighting the risks of inadequate safeguards in high-value transactions. Industry experts stressed the need for exchanges to adopt specialized security tools instead of general-purpose solutions.

The incident comes at a crucial time as the crypto industry seeks regulatory support under the Trump administration. A scheduled “crypto summit” at the White House will likely address the sector’s security vulnerabilities in light of the Bybit hack.