Bybit has announced that an Ethereum cold wallet was compromised in a sophisticated attack, leading to the theft of cryptocurrency. The announcement was made on X on February 21.
According to Bybit, the security breach resulted in over $1.46 billion in stolen assets. This incident has prompted discussions within the cryptocurrency community regarding the reliability of cold storage and multisignature wallet systems. The attackers reportedly bypassed security by deceiving human signers rather than exploiting code flaws, as said by the co-founder of Polynomial on X.
Blockchain analyst ZachXBT reported suspicious outflows from Bybit, describing it as the largest single cryptocurrency hack in history. This surpasses the previous record set by the Ronin Network hack in March 2022, which involved $620 million being stolen. The stolen assets included 401,347 ETH and other tokens like mETH and stETH, which were exchanged for ETH on decentralized platforms.
Bybit had suspended its withdrawal and custody services in France on January 8, 2025, due to regulatory pressure from the Autorité des Marchés Financiers (AMF), which blacklisted the platform in 2022 for operating without a Digital Asset Service Provider license. However, Bybit was removed from the AMF blacklist and resumed operations in France on February 14, 2025—just one week before the $1.46 billion hack targeted its Ethereum cold wallet.
The company also faced regulatory challenges in India, where Financial Intelligence Unit requirements led Bybit to limit trading while allowing withdrawals. This reflects a broader trend of exchanges exiting markets with complex Virtual Digital Asset regulations.
Bybit was launched in March 2018 and is registered in the British Virgin Islands. It operates as a major cryptocurrency derivatives exchange with headquarters in Singapore. By early 2025, it managed assets exceeding $20 billion and offered trading services for Bitcoin, Ethereum, and other digital assets globally. Despite facing regulatory hurdles such as a $1.06 million fine in India for non-compliance, Bybit continues to expand its footprint according to Regulation Asia.