Bybit

Bybit Fintech Limited
TypeCryptocurrency exchange
LocationDubai, United Arab Emirates
Founded2018 (2018)
Key peopleBen Zhou (CEO)
Websitebybit.com

Bybit Fintech Limited, known as Bybit, is a Dubai based centralized cryptocurrency exchange. The platform has faced regulatory warnings in several jurisdictions.[1][2][3]

In February 2025, the exchange was hacked resulting in the loss of $1.5 billion in assets, marking the largest cryptocurrency theft on record.[4][5][6][7]

History

Bybit was founded in 2018 by Singaporean entrepreneur Ben Zhou, who currently serves as CEO. In 2022, the company relocated its headquarters from Singapore to Dubai, United Arab Emirates.[8][7][9]

In November 2023, the FTX bankruptcy estate sued Bybit for nearly $1 billion.[10] It alleged that Bybit's investment arm Mirana prioritized withdrawals from FTX in November 2022 amid concerns about its solvency and withdrew nearly $500 million before withdrawals stopped.[10] The suit claimed that Bybit used FTX assets to expedite withdrawals, blocked FTX from reclaiming $125 million, and devalued tokens worth tens of millions through BitDAO.[10] FTX also contended that a token swap with Alameda Research in October 2021 was reversed in May 2023, when BitDAO restructured tokens, limiting redemption rights.[10] In October 2024, Bybit settled its FTX case by paying $228 million.[11]

2025 hack

On February 21, 2025, Bybit announced on X that it had been hacked.[4] According to Bybit, about 400,000 Ethereum was stolen,[12][13] which had an approximate notional value of $1.4 billion, making it the largest cryptocurrency exchange hack to date.[4] The firm reported that it was able to replenish its reserves within 72 hours by securing 447,000 ether tokens through emergency funding efforts.[14] The liquidity was provided by firms including Galaxy Digital, FalconX and Wintermute.[14] To aid Bybit customer withdrawals, a whale or institutional entity transferred 40,000 ETH from Binance, Bitget and MEXC.[15]

The attacker exploited vulnerabilities in Bybit's multi-signature wallet system, facilitated by compromised infrastructure at Safe{Wallet}, a third-party provider.[16]

Blockchain analytics firms Arkham Intelligence and Elliptic claimed they were able to trace the hack to Lazarus Group, an advanced persistent threat tied to North Korea.[13][17] The US Federal Bureau of Investigation also attributed the hack to North Korea, blaming "TraderTraitor actors".[18][19]

Sponsorships

In August 2021, Bybit sponsored Ukrainian esports organization Natus Vincere (NAVI) in a three-year deal.[20] Soon after, Bybit signed a similar agreement with Danish esports club Astralis featuring its branding on uniforms.[21][22]

In early 2022, Bybit entered Formula 1 as a sponsor of the Oracle Red Bull Racing team with a multi-year partnership, reportedly worth $150 million over three years.[23] The sponsorship ran through the 2022 to 2023 seasons, and concluded at the end of 2024 by mutual agreement.[24]

References

  1. ^ Author, No (March 3, 2025). "North Korea's $1.5 billion heist puts the crypto world on notice". The Japan Times. Retrieved March 10, 2026. {{cite web}}: |last= has generic name (help)
  2. ^ Osipovich, Alexander (July 30, 2021). "U.S. Crypto Traders Evade Offshore Exchange Bans". The Wall Street Journal. Retrieved March 10, 2026.
  3. ^ "OSC holds global crypto asset trading platforms accountable | OSC". www.osc.ca. June 22, 2022. Retrieved March 10, 2026.
  4. ^ a b c Yaffe-Bellany, David (February 22, 2025). "Big Day for Crypto Goes South After Bybit Hack". The New York Times.
  5. ^ Taubman, Benjamin (June 25, 2024). "Bybit Is Now the World's Second-Largest Crypto Exchange". Bloomberg. Retrieved March 29, 2025.
  6. ^ "Crypto Exchange Bybit Moves Headquarters to Dubai From Singapore". Bloomberg.
  7. ^ a b "Cryptocurrency theft of £1.1bn could be biggest ever, says Bybit". www.bbc.com. February 22, 2025.
  8. ^ "UAE crypto push sees Bybit, Crypto.com announce Dubai offices". Reuters.
  9. ^ "Ben Zhou: Latest Articles, Analysis and Profile". South China Morning Post. Retrieved February 23, 2025.
  10. ^ a b c d Schwartz, Leo. "FTX claims Bybit, one of world's largest crypto exchanges, used VIP status to pull hundreds of millions of dollars during collapse". Fortune Crypto.
  11. ^ Wolf, Alex (October 25, 2024). "FTX Settles Suit Against Crypto Firm Bybit for $228 Million". Bloomberg Law.{{cite news}}: CS1 maint: url-status (link)
  12. ^ Franceschi-Bicchierai, Lorenzo (February 21, 2025). "Crypto exchange Bybit says it was hacked and lost around $1.4B". TechCrunch. Retrieved March 29, 2025.
  13. ^ a b "North Korean hackers suspected of being behind record US$1.5 billion hack of crypto exchange Bybit". CNA.
  14. ^ a b Sigalos, MacKenzie (February 24, 2025). "Crypto exchange Bybit says it fully replenished reserves after record $1.5 billion hack". CNBC. Retrieved February 25, 2025.
  15. ^ Irabor, Edison (April 18, 2025). "Why Collaboration is Vital in the Crypto Industry: The Bybit Hack and Bitget $106million Example". Crypto Asset Buyer. Retrieved March 16, 2026.
  16. ^ "Lazarus hacked Bybit via breached Safe{Wallet} developer machine". BleepingComputer. Retrieved March 29, 2025.
  17. ^ Research, Elliptic. "The largest theft in history - following the money trail from the Bybit Hack". Elliptic. Retrieved March 29, 2025.
  18. ^ McCurry, Justin (February 27, 2025). "North Korea behind $1.5bn hack of crypto exchange ByBit, says FBI". The Guardian.
  19. ^ "Internet Crime Complaint Center (IC3) | North Korea Responsible for $1.5 Billion Bybit Hack". Federal Bureau of Investigation. Retrieved March 29, 2025.
  20. ^ Nicholson, Jonno (August 18, 2021). "NAVI unveils Bybit as cryptocurrency partner".
  21. ^ Daniels, Tom (August 23, 2021). "Astralis agrees three-year deal with cryptocurrency platform Bybit".
  22. ^ Gernigon, Frederik (August 23, 2021). "Dansk storhold indgår historisk sponsoraftale". www.bt.dk.
  23. ^ "Red Bull Formula One Team Signs Cryptocurrency Sponsor". Bloomberg News. February 16, 2022. Retrieved May 17, 2025.
  24. ^ "Red Bull sign partnership deal with cryptocurrency exchange Bybit". Reuters. February 16, 2022.