The cryptocurrency exchange Bybit has announced the implementation of updated security standards in response to a massive hack that occurred in February 2025. As a result of the incident, the company suffered losses amounting to $1.5 billion — the largest case in the industry’s history, although the core infrastructure and basic protective mechanisms remained intact.
This is reported by Finway
Comprehensive Review and Strengthening of Protection
Immediately following the incident, Bybit initiated a large-scale security audit and reorganized its protective processes. Within a month, the exchange conducted nine independent system audits, resulting in the implementation of over 50 new measures and recommendations from internal specialists and external consultants aimed at addressing vulnerabilities.
Implementation of Innovative Asset Storage Solutions
To minimize risks and enhance security, Bybit improved its cold wallet solutions. A multi-layered protection structure was introduced, which includes an updated OSP authorization procedure, full expert control at all stages of transactions, the use of MPC (Multi-Party Computation) technology to enhance hardware security, and the consolidation of HSM (Hardware Security Modules).
In the field of information security, the exchange integrated default encryption and received ISO/IEC 27001 certification — an international standard for information security risk management widely used in large financial institutions. All internal and external communications are now encrypted on an end-to-end basis, and file systems are optimized for secure data storage at rest.
“In the realm of security, we are only as strong as our weakest link. Over the past two months, we have doubled our efforts to strengthen the platform and procedures in response to the evolving security landscape. We will continue to deliver secure, reliable, and user-friendly trading solutions that meet our customers’ expectations,” stated Bybit co-founder and CEO Ben Zhou.
Restoration of Operations, Transparency, and Market Impact
After the hack, Bybit quickly restored full operations: within the first 12 hours, a record number of withdrawal requests were processed. Exchange clients received full compensation, and the search for stolen assets continues through the specialized platform Lazarus Bounty, which has already distributed over $2.3 million in rewards for assistance in the investigation.
Bybit has declared maximum transparency — confirmations of reserves have been published, and leadership positions have been restored: in March 2025, the exchange ranked first in capital inflow among centralized platforms. A report from analysts at Kaiko confirms the recovery of liquidity within 30 days after the incident.
Experts predict that this case will impact the entire cryptocurrency industry, prompting other centralized exchanges to reassess their approaches to security and risk management to effectively counter modern cyber threats.