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On-chain security analyst ZachXBT has identified North Korea’s Lazarus Group as the perpetrator behind the significant $1.46 billion breach of cryptocurrency exchange Bybit.
Arkham Intelligence, which initiated a bounty campaign to identify those responsible, validated ZachXBT’s conclusions on February 21.
The bounty offered 50,000 ARKM tokens, valued at approximately $31,500, for credible information regarding the assailants.
Bybit Hack Becomes Largest Crypto Exchange Breach to Date
The Bybit breach, which led to the theft of staked Ether (ETH) and various ERC-20 tokens, is now regarded as the largest hack of a cryptocurrency exchange to date, according to blockchain security firm Blockaid.
ZachXBT promptly traced the stolen assets using on-chain data and provided the evidence to Arkham, confirming the involvement of the Lazarus Group.
The magnitude of the theft sent ripples throughout the cryptocurrency sector, prompting rapid reactions from notable individuals and platforms.
Justin Sun, founder of the Tron blockchain, stated on X that his network is working with Bybit to track the stolen assets.
We’ve been monitoring the Bybit incident very closely and will do our utmost to assist our partners in tracking the relevant funds, providing all the support within our capabilities.
— H.E. Justin Sun
(@justinsuntron) February 21, 2025
OKX, another prominent cryptocurrency exchange, deployed its security team to assist Bybit in the investigation, according to its chief marketing officer, Haider Rafique.
KuCoin, a leading global exchange, publicly expressed support for Bybit, highlighting the necessity of collaboration among exchanges to combat cyber threats.
“Crypto is a shared responsibility,” KuCoin stated, urging exchanges to work together to enhance cybersecurity measures across the industry.
In light of concerns regarding market instability, several industry leaders aimed to alleviate fears of widespread contagion.
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Coinbase executive Conor Grogan emphasized Bybit’s resilience, noting that despite the hack, the exchange continued to process withdrawals and maintained over $20 billion in assets.
“Their cold wallets remain untouched, and this incident is isolated,” Grogan remarked, adding, “This isn’t another FTX situation. Bybit is well-capitalized and will recover.”
Bybit appears to be processing withdrawals just fine after their hack
They’ve $20B+ in assets on the platform and their cold wallets are untouched. Given the isolated nature of the signing hack, and how well-capitalized Bybit is, I don’t expect there to be contagion pic.twitter.com/INQvlAXbTr— Conor (@jconorgrogan) February 21, 2025
Stani Kulechov, founder of the decentralized lending protocol Aave, which previously experienced its own security breach, also commented, offering support and advising caution in response to the incident.
Security experts and community members shared practical advice to protect users’ assets in light of the hack.
“Give up,” vice president of blockchain at Yuga Labs, posted several security recommendations on X, encouraging users to utilize multisignature wallets, hardware wallets, and transaction simulations for enhanced security.
KuCoin reinforced the message, advising its users to enable two-factor authentication, use strong, unique passwords, and activate passkeys to prevent potential breaches.
Crypto Market Lost $1.49B to Hacks in 2024
As reported, the cryptocurrency industry faced losses totaling $1.49 billion in 2024 due to hacks and fraud, representing a 17% decrease from 2023.
According to a report by blockchain security platform Immunefi, hacks were overwhelmingly the primary cause, accounting for $1.47 billion or 98.1% of the total losses across 192 incidents.
Fraud, including rug pulls and scams, constituted just 1.9% of the losses at $28 million, although this category saw a 72% increase year-on-year.
The reduction in overall crypto losses reflects improved security measures, as the number of successful attacks also declined by 27.5%, from 320 in 2023 to 232 in 2024.
The post ZachXBT Identifies North Korea’s Lazarus Group Behind $1.46B Bybit Hack, Arkham Confirms appeared first on Cryptonews.
