In the cryptocurrency space, the most recent hack sent shockwaves through the community. The victim was the Bybit exchange; the hack, valued at an astounding $1.4 billion, is under close examination by authorities. Leading the investigation into the hack is the well-known on-chain analyst ZachXBT, whose research identifies the culprits.
Bybit’s $1.4 Billion Heist
On February 21, 2025, Bybit confirmed a major security breach in the Ethereum cold wallet, and approximately $1.4 billion in funds were stolen. The hack occurred during the migration from a multisig cold wallet to a hot wallet, amounting to a loss of 401,347 ETH. A bounty to provide details to track the funds and the hackers has since been offered by Arkham Intelligence.
ZachXBT’s Investigation
ZachXBT, a prominent on-chain investigator, assisted in revealing the facts in the Bybit hack. Through advanced blockchain research, he followed the funds from the hack through multiple wallets, discovering patterns in alignment with other significant cryptocurrency heists.
He presented a report outlining how hackers used sophisticated money-laundering practices to obscure the trail, eventually leading to Arkham Intelligence.
Arkham Intelligence had earlier announced a 50,000 ARKM (approximately $31,600) reward for actionable information about the hackers. The investigation also benefited from the support of the platform at Arkham, whose tools assisted in verifying wallet connections and flows to support the findings. The collective effort helped to provide necessary leads in attributing the hack to an organized group.
Infamous Lazarus Group
Sophisticated cyberattacks such as the 2014 Sony Pictures hack and the $81 million robbery from Bangladesh Bank are well-known for coming from the North Korean-backed Lazarus Group. Targeting cryptocurrency exchanges, they use innovative methods to carry mass scale theft and hide from authorities. Claiming the name APT38, they rank among the most lethal cybercrime agents worldwide.
Community Reactions and Security Implications
The crypto community reacted to the Bybit hack with a mix of concern and demands for enhanced security across all exchanges. Tips are being shared by users about how to safely store digital assets, focusing on the use of hardware wallets and multi-factor authentication. The security protocols at Bybit are under scrutiny by many, who are demanding transparency.
This incident also highlights the long-term vulnerabilities in centralized cryptocurrency exchanges and the need to establish effective security protocols and predictive threat monitoring to protect the users’ funds. The hack also could force the regulators to impose tighter compliance demands in the cryptocurrency market.
