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Bybit Exchange: A Review of the Default | A Crisis of Trust After the Largest Hacker Attack in History
3 months before
Summary：In February 2025, Bybit, a leading UAE-based cryptocurrency exchange, suffered the world's largest hack to date, with approximately 1.4 million ETH (worth $1.5 billion) stolen. Despite official announcements that emergency funding measures had been initiated to safeguard user assets, the incident completely shook user confidence, making Bybit an extremely high-risk exchange, potentially facing potential default.
2. Platform Background Review
Founded : 2018, headquartered in Dubai;
Business scale : One of the top ten exchanges in the world, with daily trading volume consistently ranking high;
Main user groups : Focusing on derivatives contract trading, it is popular among users in Asia and the Middle East;
Brand promotion : High liquidity, low fees and professional contract functions attract a large number of retail investors and institutions.
3. The Real Story of the Thunderbolt Incident
February 21, 2025 : Bybit officially confirmed that it had been hacked, with approximately 1.4M ETH stolen, worth approximately $1.5 billion.
Attack method : Hackers exploited a vulnerability in the third-party Safe{Wallet} wallet to break through the multi-signature mechanism and directly steal funds from the cold wallet;
Official response : Bybit stated that it will use emergency liquidity reserves and partner funding pools to compensate for losses, and user account balances are not affected for the time being;
Subsequent developments : Although some funds were recovered, the authorities have never disclosed the complete audit report, which lacks transparency.
4. Signs of a scam/runaway model
Fund security is extremely poor : cold wallets have been compromised, and basic security mechanisms have completely failed;
Insufficient information disclosure : Failure to disclose the complete on-chain transfer path and security audit results;
Public opinion crisis : Investors are generally concerned about the solvency of the platform, and there are doubts about "running away";
Lack of regulation : Although the UAE has some regulation on encryption, it lacks a mandatory protection mechanism.
5. Risk Rating (BrokerHiveX Standard)
| Dimensions | Rating (0–10) | Comments |
|---|---|---|
| Fund security | 1/10 | Cold wallet breached, huge amount of funds stolen |
| Compliance supervision | 2/10 | The UAE lacks adequate regulation and international licenses |
| transparency | 2/10 | Limited disclosure and lack of third-party security audits |
| User reputation | 3/10 | Although user funds have not been damaged for the time being, trust has dropped significantly |
| Technical strength | 4/10 | Contract trading strength is still there, but security vulnerabilities are exposed seriously |
Overall rating: 2.4/10 (high risk suspected platform)
VI. Media and Community Evaluation
Financial Times : Reporting that Bybit suffered the largest hacker attack in history, directly impacting its reputation for fund security;
AP News : Emphasized that the incident highlights serious shortcomings in security and transparency in the crypto industry;
Community opinion : A large number of investors on social platforms questioned whether Bybit could truly fully compensate for its losses, and worried that similar incidents would occur again in the future.
7. Investor Precautions
Suspend your use of Bybit : In particular, do not deposit or conduct large transactions until the incident is completely resolved;
Diversify assets : spread funds across different regulated platforms to reduce concentration risk;
Use a cold wallet : For long-term asset holdings, hardware wallets such as Ledger and Trezor are preferred;
Follow official progress : Pay attention to Bybit’s announced compensation plans, audit reports, and security upgrade measures.
8. Conclusion
The hacking incident that Bybit suffered in 2025 not only resulted in significant asset losses but also completely shattered its reputation as a "safe and reliable" platform. Despite official promises to compensate users, the lack of transparent auditing and regulatory oversight has left Bybit with the appearance of a "suspected runaway platform" in the eyes of investors.
Final verdict: Bybit is an extremely high-risk exchange and should be used with caution or even avoided.
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