Bybit Hack: What Happened & How Investors Can Stay Secure

24 Feb 2025 by Sharlife
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The cryptocurrency world was shaken recently as Bybit, one of the leading crypto exchanges, reportedly suffered a security breach. This has left many investors questioning the safety of their funds and looking for ways to minimize risks. Hacks on centralized exchanges (CEXs) are not new, but they serve as an urgent reminder for investors to take security seriously. In this article, we’ll cover what happened in the Bybit hack, its impact on investors, and the steps you should take to protect your assets.

What Happened in the Bybit Hack?

Bybit, a major cryptocurrency exchange, suffered a record-breaking hack on February 21, 2025, losing approximately $1.5 billion in digital assets, primarily Ethereum (ETH). Hackers used sophisticated social engineering tactics to gain access to Bybit's systems, exploiting vulnerabilities in the multi-signature authentication process. They manipulated a routine transaction from a cold wallet to a hot wallet, altering the smart contract logic to transfer control of the cold wallet to themselves. The stolen funds were then laundered through various methods, including decentralized exchanges and cross-chain bridges. The attack is attributed to North Korea's Lazarus Group, known for similar hacks. Bybit has since replenished its reserves and maintained operational continuity.

How to Protect Yourself After the Bybit Hack

If you’re a Bybit user, take these immediate steps to secure your funds and minimize future risks:

1. Secure Your Exchange Account

  • Change Your Password Immediately – Use a strong, unique password that you don’t use elsewhere.
  • Enable Two-Factor Authentication (2FA) – Use Google Authenticator or another secure 2FA method.
  • Check Your Account for Suspicious Activity – Look for unauthorized transactions or login attempts.

2. Withdraw Your Funds to a Private Wallet

  • Use a Hardware Wallet – Store long-term holdings in a cold wallet.
  • Consider a non-Custodial Wallet, where you control the private keys.
  • Avoid Keeping Large Amounts on Exchanges – CEXs are convenient but not 100% secure.

3. Be Wary of Phishing Attacks

Hackers may try to impersonate Bybit to steal your credentials. Be careful!

  • Do NOT click on suspicious emails or links claiming to be from Bybit.
  • Verify all updates through Bybit’s official website and social media accounts.
  • Use a unique email for crypto accounts to reduce the risk of phishing.

4. Stay Informed & Follow Security Updates

  • Check Bybit’s official announcements to see if they offer compensation.
  • Follow crypto security channels & forums for the latest news on the hack.
  • Monitor your assets regularly for any suspicious activity.

5. Consider Using Decentralized Exchanges (DEXs)

If security concerns about CEXs persist, DEXs allow users to trade directly from their wallets without trusting a third party.

How to Stay Secure & Prevent Future Losses

While the Bybit hack is concerning, investors can take proactive measures to protect their assets in the future:

  • Never store large amounts of crypto on exchanges – Use private wallets for better security.
  • Use strong passwords & enable 2FA – A simple step that adds a strong layer of security.
  • Diversify your storage methods – Don’t keep all your funds in one place.
  • Keep your software & wallets updated – Security patches help prevent breaches.
  • Be cautious of suspicious links & emails – Avoid scams that target crypto users.

Conclusion

The Bybit hack is a wake-up call for crypto investors. While centralized exchanges provide convenience, they also come with risks. Taking the right security measures can help you avoid losses and protect your assets in the long run.

If you’re also concerned about the Shariah compliance of your crypto investments, check the Shariah status of your cryptocurrency here.