Bybit faced one of the largest security breaches in crypto history, but rather than standing alone, the exchange witnessed an extraordinary wave of industry-wide support. The exchange reportedly lost more than $1.4 billion in liquid-staked Ether (ETH) and MegaETH (mETH) due to a security breach.
Key players in both centralized and decentralized finance rallied to contain the attack, prevent fund movement, and support the recovery process. This collective effort underscores the crypto industry's resilience and commitment to security.
In response, Bybit has also launched a $140M Recovery Bounty Program, offering incentives to experts who help track and retrieve stolen assets.
Immediate Action to Contain the Breach
The moment Bybit detected the attack, its security team reportedly locked down the system, secured user funds, and coordinated with top cybersecurity firms. Major industry names, including Antalpha Global, Bitget, Pionex, MEXC, and others, stepped in to assist.
????ALERT????Our system has detected abnormal activity, including suspicious behavior involving the @Bybit_Official wallet!Several wallets are exhibiting highly suspicious patterns, and we are actively reaching out to the exchange to warn them. The total affected assets are… pic.twitter.com/iAQqlgU4Rf
— ???? Cyvers Alerts ???? (@CyversAlerts) February 21, 2025
Blockchain security firms blacklisted addresses linked to the exploit, preventing unauthorized fund transfers. Chainalysis reportedly identified the hacker’s wallet, allowing the broader community to track movements in real time.
“Within 24 hours of the event, we were overwhelmed with support from some of the best people and organizations in the industry, and we do not take it for granted. We have shared in a dark moment of crypto history, and we’ve proven we are better than the malicious actors,” said Ben Zhou, co-founder and CEO of Bybit.
“We want to officially reward our community for lending us their expertise, experience, and support through the Recovery Bounty Program, and our efforts to make this difficult lesson a valuable one does not stop here."
As part of the investigation and recovery efforts, Bybit is pledging 10% of recovered funds to reward ethical cyber and network security experts who play an active role in retrieving the stolen cryptocurrencies in the incident. Read more here: https://t.co/DCKgSTnMVO
— Bybit (@Bybit_Official) February 22, 2025
Strengthening Crypto’s Security Future
Additionally, Zero Shadows activated a 24/7 response team to assist with bad actor tracing, fund recovery, and law enforcement coordination, the exchange mentioned. Despite the uncertainty, Bybit’s institutional clients, including Wintermute, Cumberland, and GSR Markets, maintained trading positions, preventing widespread market panic.
Bybit’s $140M Recovery Bounty ProgramDetermined to retrieve stolen assets, Bybit has announced a Recovery Bounty Program, offering 10% of recovered funds to security experts who contribute to tracking and reclaiming the lost crypto assets.
It’s been a challenging 24 hours, but one thing is clear—our partners have our backs. The support from @AntalphaGlobal, @bitgetglobal, @MEXC_Official , @galaxyhq , @falconxnetwork , @LidoFinance , @fenbushi, @pionex_com and many others has been nothing short of incredible.Your…
— Bybit (@Bybit_Official) February 22, 2025
With over $1.4 billion in compromised funds, the bounty could reach $140 million in rewards. Bybit has also called on ethical hackers, analysts, and blockchain investigators to join the initiative.
This article was written by Jared Kirui at www.financemagnates.com.
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