This is a contributor content by Valeriy Yasakov, CEO of The One.
As the CEO of a revolutionary unified cross-chain exchange in the Telegram mini-app that aims to simplify crypto trading, I would like to share my expert opinion on the current state of crypto security and essential preventive measures against cyber attacks. The recent hack of Bybit Exchange on February 21, 2025 has once again highlighted the significant impact of cyber-attacks on the cryptocurrency market. This incident, which resulted in the theft of approximately $1.5 billion worth of Ethereum (ETH), stands as the largest digital heist in cryptocurrency history.Let’s examine some interesting statistics and data surrounding cyber attacks in the crypto space and their consequences.
Scale and Frequency of Attacks and Market Impact
The Bybit hack is part of a worrying trend of increasing cyber attacks on cryptocurrency platforms. In 2024, North Korea-linked hackers alone stole approximately $1.34 billion in 47 incidents, a 102.88% increase from the $660.5 million stolen in 20 incidents in the previous year. The Bybit hack in 2025 has already surpassed the entire amount stolen by North Korea in 2024 by nearly $160 million.
The immediate market reaction to the Bybit hack demonstrated the volatility that such incidents can cause:
- ETH dropped 4.2% from $2,828 to $2,708 within minutes of the announcement.
- A brief rebound of 3.36% followed, bringing the price back to $2,759.
The initial drop in the ETH price was followed by a quick rebound, fuelled by speculation that Bybit would have to buy back ETH on a 1:1 basis to compensate users. This speculation was based on the assumption that Bybit would have to buy back ETH on a 1:1 basis to compensate affected users.
Bybit has secured a bridging loan for 80% of the lost ETH, as clarified by Bybit co-founder and CEO Ben Zhou during a live stream. He also stated that Bybit had no immediate plans to buy large amounts of ETH on the spot market. This news caused a rapid shift in market sentiment from bullish to bearish, due to concerns that the hacker would sell the stolen ETH and a general increase in risk aversion among investors.
Types of Cyber Attacks
While previous major hacks have often targeted vulnerabilities in smart contract code or cross-chain bridges, the Bybit incident represents a shift towards targeting the human element:
- The attackers used social engineering tactics to compromise the exchange’s user interface.
- They manipulated cold wallet signatories into authorising malicious transactions.
This trend is consistent with research showing a shift from traditional security attacks to more sophisticated methods.
In terms of the amount stolen by type of victim platform, 2024 also showed interesting patterns. In most quarters between 2021 and 2023, decentralised finance (DeFi) platforms were the main targets of crypto hacks. It’s possible that DeFi platforms were more vulnerable because their developers tend to prioritise rapid growth and getting their products to market over implementing security measures, making them prime targets for hackers.
Although DeFi still accounted for the largest share of stolen assets in Q1 2024, centralised services were the most targeted in Q2 and Q3.
This shift in focus from DeFi to centralised services highlights the increasing importance of security mechanisms commonly exploited in hacks, such as private keys. Private key compromises accounted for the largest share of stolen crypto in 2024, at 43.8%. For centralised services, ensuring the security of private keys is critical as they control access to users’ assets.
User Education: A Critical Component
While exchanges bear significant responsibility for security, user education plays a critical role. Comprehensive education initiatives should equip users with the knowledge to
- Create and manage strong, unique passwords
- Recognize social engineering tactics and phishing attempts
- Understand the importance of regular backups
In conclusion, the Bybit hack is a stark reminder of the ongoing security challenges in the cryptocurrency space. As the market continues to grow, so too will the methods used by hackers. It is imperative that the industry stays ahead of the curve by adopting advanced technologies, fostering collaboration and continuously educating users. By implementing comprehensive security measures and remaining vigilant, we can work towards creating a safer environment for all participants in the crypto ecosystem.
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