Bybit beefs up security after largest crypto hack in history
Date: 2025-06-06 Author: Henry Casey Categories: BUSINESS
Cryptocurrency exchange Bybit has reconsidered its approaches to protecting data and digital assets after a high-profile incident that occurred in February 2025. As a result of the hacker attack, $1.5 billion was stolen - this was the largest theft in the industry. Although the main systems remained intact, the team decided to completely rebuild the security infrastructure.
One of the first steps was a large-scale audit of all internal processes. In the month after the incident, Bybit conducted nine external audits, as a result of which more than 50 new security mechanisms were implemented. These measures cover all levels of the exchange's work - from internal access to the protection of user funds.
Particular attention was paid to cold wallets. The company implemented a three-tier security structure. It includes an enhanced authorization procedure (OSP), based on full control by security specialists. It also uses MPC (multi-party computing) technology, which provides decentralized verification of transactions, and hardware security modules (HSM), which increase the physical resistance of the infrastructure to hacking.
An equally important part of the updates was information security. According to Bybit representatives, all data exchanges are now encrypted by default from the sender to the recipient, and storage is optimized for reliable storage of encrypted information. In addition, the company received ISO / IEC 27001 certification - an international standard for risk management in the field of information technology, widely recognized in the banking industry.
The company's CEO Ben Zhou noted that the team has doubled its efforts amid growing threats. According to him, Bybit strives to remain at the forefront of customer protection and platform stability.
It is emphasized that the recovery from the incident was quick: within the first 12 hours after the attack, the exchange was fully operational, processing user requests. All client funds were reimbursed, and the investigation into the theft continues through the Lazarus Bounty platform, where over $2.3 million in rewards for useful information have already been paid out.
Bybit also announced a transition to full transparency. The platform published updated data on reserves and took first place in terms of the volume of inflow of funds among centralized exchanges in March. According to the Kaiko report, the exchange's liquidity was fully restored within 30 days.
However, the company itself notes: the consequences of this hack will affect the entire market. Exchanges will have to rebuild security standards to remain resilient to new threats.
