ByBit's $1.5B Crypto Heist: Lazarus Group Strikes, Exchange Fights Back

ByBit, a Dubai-based cryptocurrency exchange known for its robust security features, suffered a significant blow on February 21, 2025, when it was hacked in what is now considered the largest digital heist in history. The exchange lost approximately $1.5 billion worth of ETH in the attack. In response, ByBit offered a 10 percent bounty on recovered funds, aiming to retrieve the lost assets.

Investigations by Arkham Intelligence revealed that the Lazarus Group, a North Korean hacker collective notorious for large-scale crypto thefts, was behind the hack. The group spread the stolen funds across 53 wallets, making it challenging to trace the stolen assets. ByBit has since been working with local law enforcement and blockchain forensic experts to locate the funds.

Despite the magnitude of the hack, ByBit's CEO, Ben Zhou, reassured the public that clients' assets were backed 1-to-1, and users should not worry about their losses. However, the incident sparked a wave of withdrawal requests, with approximately 350,000 requests made within 10 hours of the hack. ByBit successfully processed all withdrawals within 12 hours, demonstrating the platform's resilience under stress.

In the wake of the hack, Gems Trade, a next-generation regulated cryptocurrency centralized exchange (CEX), publicly stood by ByBit. In a statement, Gems emphasized its trust in ByBit's ability to overcome the current challenges and expressed confidence in the exchange's resilience as an industry leader.

Gems Trade, which is preparing to launch its new exchange platform, has placed a high emphasis on security. The company has partnered with Fireblocks, an enterprise platform for managing digital asset operations and building innovative blockchain businesses, to ensure its security exceeds industry standards. Fireblocks will provide top-to-bottom cybersecurity for Gems Trade wallets, safeguarding funds from both internal and external threats. This partnership underscores Gems Trade's proactive approach to security, aiming to prevent similar hacks like the one experienced by ByBit.

The new Gems Trade exchange platform is currently in its final stages of development and is expected to launch soon. As the crypto industry continues to grow and evolve, the importance of robust security measures cannot be overstated. Gems Trade's commitment to security, along with its partnership with Fireblocks, demonstrates the company's dedication to providing