USDThe Bybit Weekend Drama: How It Stacks Up Against History’s Biggest Crypto Exploits
The recent Bybit hack just sent shockwaves through the crypto world. A major player in the exchange game just got hit, and the numbers aren’t pretty. DefiLlama data, along with other crypto market analysts, suggest it’s currently the biggest single crypto hack in history.
Remember Mt. Gox, the 2014 disaster that swallowed 850,000 BTC? Or the Ronin Bridge attack, where hackers made off with $625 million? Those events reshaped crypto security forever.
So where does the Bybit hack stand? If the losses reach billions, it could rank among the worst. But beyond the numbers, the real question is—does this follow old patterns, or are we looking at a new type of vulnerability?
The Bybit Hack Overview
This crypto exploit wasn’t just another crypto exchange hacked story—it was a calculated breach that hit one of crypto’s major players, exposing deep vulnerabilities in cold wallet security.
1. Target & Timing
Hackers went straight for Bybit exchange’s Ethereum cold wallet, which is supposed to be offline for security. At around 10 a.m. EST on February 21, blockchain sleuth ZachXBT spotted suspicious outflows—over $1.46 billion in ETH—triggering industry-wide alarm.
2. Attack Method
The exploit wasn’t brute force; it was deception at its finest. Here’s how they pulled it off:
- Multisig Exploit: The attackers manipulated Bybit’s multi-signature system, sneaking in a “masked” transaction that seemed legitimate.
- UI Trickery: The interface showed transactions linked to Safe (a trusted wallet tool), but the underlying smart contract logic was altered with malicious code.
- Total Haul: The breach drained 401,347 ETH (~$1.12B), along with stETH, cmETH, and mETH, bringing the total loss past $1.4 billion.
3. Immediate Response & Solvency
Bybit’s CEO Ben Zhou confirmed the crypto hack live on X, while the market reacted swiftly. ETH prices dipped over 3%, and withdrawal requests on Bybit surged past 350,000 as users scrambled to secure their funds.
Despite the turmoil, Bybit exchange maintained its position, citing $20 billion in assets under management and a 1:1 client fund backing to reassure users. The exchange quickly secured bridge loans covering 80% of the loss, preventing a large-scale ETH buyback that could have further rattled the market. Withdrawals have since resumed normal operations.
4. Investigation & Fallout
The stolen funds scattered across 40+ wallets, with investigators tracking movements. Early signs point to North Korea’s Lazarus Group, reinforcing concerns over state-sponsored crypto attacks.
Historical Crypto Hacks: Quick Summaries
Crypto hacks aren’t new, but some stand out due to their sheer scale and impact. Here’s a quick rundown of five of the biggest breaches in history, each offering a lesson in security failures.
1. Ronin Network Hack (March 2022)
- Amount stolen: ~$625 million (ETH + USDC).
- How it happened: Hackers compromised validator node keys using phishing attacks, allowing them to approve massive transactions.
- Aftermath: The attack was linked to North Korea’s Lazarus Group, but only a fraction of the funds were recovered. Axie Infinity, which relied on Ronin, had to raise capital to compensate users.
2. Poly Network Hack (August 2021)
- Amount stolen: ~$611 million across multiple blockchains.
- How it happened: A hacker exploited a smart contract logic flaw, allowing them to move funds across networks.
- Outcome: Surprisingly, the attacker returned most of the funds, claiming it was a white-hat operation to expose vulnerabilities. Still, the incident exposed the risks of cross-chain interoperability.
3. BNB Chain Hack (October 2022)
- Amount stolen: ~$568 million (2 million BNB).
- How it happened: Hackers found a bug in the cross-chain bridge’s smart contract, allowing them to mint fake BNB and withdraw funds.
- Aftermath: Binance froze the blockchain temporarily, stopping further theft. However, around $100 million was already moved off-chain, making recovery impossible.
4. Coincheck Hack (January 2018)
- Amount stolen: ~$534 million in NEM tokens.
- How it happened: Attackers used phishing and malware to breach a hot wallet lacking multi-signature security.
- Response: Coincheck fully reimbursed users, but the attack led to stricter Japanese regulations on exchanges.
5. Mt. Gox Hack (2014)
- Amount stolen: ~$473 million at the time (850,000 BTC).
- How it happened: BTC was draining from hot wallets for years, but poor security and internal mismanagement allowed the theft to go unnoticed.
- Impact: Mt. Gox collapsed, BTC’s price tanked, and creditors are still being repaid—over a decade later.
Where Does the Bybit Exchange Hack Rank?
Crypto hacks come in all shapes and sizes, but the Bybit hack isn’t just another breach—it’s now one of the largest crypto exchange hacks ever. Let’s break down how it compares to previous major incidents.
Scale: The Biggest Yet
- At $1.4 billion, the Bybit hack surpasses Ronin ($625M) and Poly Network ($611M) in total losses.
- It now ranks as the largest single crypto exchange hacked event in history, putting it in a league of its own.
Attack Method: Next-Level Exploit
- Unlike Ronin (private key theft) or Poly Network (smart contract bug), Bybit’s hack involved a multi-signature exploit using a “masked” transaction.
- The attack tricked Bybit’s system into approving malicious transactions, showing how hacker tactics are evolving beyond traditional phishing and contract flaws.
Target Type: Exchanges vs. Bridges
- Bybit and Coincheck were centralized exchanges (CEXs), meaning hackers went after their wallet infrastructure.
- Ronin, Poly, and BNB Chain involved DeFi/cross-chain bridges, where vulnerabilities in smart contracts allowed large-scale theft.
- This shows that no part of the crypto ecosystem—CEXs, DeFi, or bridges—is completely safe from sophisticated attacks.
Perpetrators: Familiar Faces
- Like Ronin, early evidence suggests Lazarus Group may be behind the Bybit hack.
- Other breaches had unclear culprits—Poly’s attacker even returned the funds, calling it a security test.
Recovery & Aftermath: Lessons Learned
- Bybit secured loans covering 80% of the loss and kept withdrawals running—unlike Mt. Gox, which collapsed entirely.
- The crypto market reaction was relatively muted, with ETH only dropping 3%, compared to the prolonged BTC crash after Mt. Gox.
Conclusion
The Bybit hack reinforces that centralized exchanges remain prime targets, even with multisig security in place. Strengthening validation processes, employee education, and rigorous audits is critical.
Despite the $1.4 billion loss, markets showed resilience, much like after Coincheck’s breach, signaling that crypto users have adapted to these risks. However, as attacks grow more sophisticated, real-time asset monitoring and AI-driven security will become essential.
