On-chain security analyst ZachXBT has identified North Korea’s Lazarus Group as the orchestrator behind the massive $1.46 billion hack on cryptocurrency exchange Bybit.
Arkham Intelligence, which launched a bounty campaign to uncover those responsible, confirmed ZachXBT’s findings on February 21.
The bounty offered 50,000 ARKM tokens, worth approximately $31,500, for credible information about the attackers.
Bybit Hack Becomes Largest Crypto Exchange Breach to Date
The Bybit hack, which resulted in the theft of staked Ether (ETH) and other ERC-20 tokens, is now considered the largest crypto exchange hack to date, according to blockchain security firm Blockaid.
ZachXBT quickly traced the stolen assets using on-chain data and submitted the evidence to Arkham, solidifying the Lazarus Group’s involvement.
The scale of the theft sent shockwaves throughout the crypto industry, prompting swift responses from prominent figures and platforms.
Justin Sun, founder of the Tron blockchain, stated on X that his network is collaborating with Bybit to track the stolen funds.
We have been monitoring the Bybit incident very closely and will do our best 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 major crypto 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 solidarity with Bybit, emphasizing the importance of industry cooperation to combat cyber threats.
“Crypto is a shared responsibility,” KuCoin stated, urging exchanges to collaborate to strengthen cybersecurity measures across the industry.
Amid concerns of market instability, several industry leaders sought to calm fears of widespread contagion.
Coinbase executive Conor Grogan highlighted Bybit’s resilience, noting that despite the hack, the exchange continued processing withdrawals and held over $20 billion in assets.
“Their cold wallets remain untouched, and this incident is isolated,” Grogan said, adding, “This is not another FTX situation. Bybit is well-capitalized and will recover.”
Stani Kulechov, founder of decentralized lending protocol Aave, which previously experienced its own security breach, also weighed in, offering support and urging caution in response to the incident.
Security experts and community members shared practical advice to safeguard users’ assets in light of the hack.
“Quit,” vice president of blockchain at Yuga Labs, posted several security recommendations on X, encouraging users to employ multisignature wallets, hardware wallets, and transaction simulations for enhanced safety.
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 crypto industry witnessed losses totaling $1.49 billion in 2024 due to hacks and fraud, marking 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, represented just 1.9% of the losses at $28 million, though this category saw a 72% increase year-on-year.
The decline in total crypto losses reflects improved security measures, as the number of successful attacks also fell by 27.5%, from 320 in 2023 to 232 in 2024.
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