In a stunning turn of events, cryptocurrency exchange Bybit has managed to recover all funds lost in what was briefly the largest crypto theft in history. The February 21, 2025 hack, which drained a jaw-dropping $1.5 billion in Ethereum and other tokens, sent shockwaves through the crypto world.
A rare crypto heist with a happy ending—$1.5 billion stolen, then miraculously recovered
But unlike most crypto heists, this one actually has a happy ending.
The attack was no amateur job. Hackers—likely North Korea’s infamous Lazarus Group—executed a supply chain attack targeting Safe{Wallet} infrastructure. They masked the signing interface, altered smart contract logic, and made off with 401,000 Ethereum. Pretty slick.
They quickly dispersed funds across 50 different wallets because, you know, that’s what you do with stolen crypto.
Bybit didn’t waste time whining. They locked down systems, kept withdrawals running (bold move), and offered a 10% bounty on recovered funds. That’s $140 million up for grabs. Five bounty hunters collectively scored $4.2 million for their efforts. Not bad for tracking digital breadcrumbs.
The recovery effort was surprisingly effective. Crypto platforms froze over $42.89 million in suspicious transactions within days. CEO Ben Zhou reassured users that Bybit remains completely solvent despite the massive theft. Through loans and deposits, Bybit received 446,870 Ethereum back, closing their asset gap in just 72 hours.
An independent audit later confirmed full 1:1 asset backing restoration. Crisis averted.
Technical analysis revealed the hackers used phishing to deceive Bybit’s wallet signers and injected malicious code into the wallet interface. Classic crypto villain stuff.
The aftermath has brought new security measures. Bybit developed HackBounty, a platform specifically designed to track hackers.
They’ve released a new API that updates lists of suspicious wallet addresses and emphasized the importance of private key control. The advanced cryptography used in cryptocurrency serves as a crucial defense layer, preventing unauthorized access without proper digital keys.
This attack surpassed the previous record of 611 million dollars stolen in a single crypto heist back in 2021.
The crypto community’s collaborative response to this attack might actually make the ecosystem stronger. Sure, hackers stole $1.5 billion, but they couldn’t keep it.
Sometimes the good guys win. Even in crypto.
