Crypto Industry Security Measures Unchanged Despite $1.4 Billion Bybit Hack
1min read Despite the significant loss of $1.4 billion in the recent Bybit hack, the approach to cybersecurity within the crypto industry has not undergone substantial changes, according to Dyma Budorin, the CEO of Hacken.
During an interview at the Token2049 event in Dubai, Budorin highlighted that the industry continues to rely on limited security measures such as bug bounties and penetration tests, rather than adopting comprehensive, layered security strategies. He emphasized that these isolated measures are insufficient for ensuring robust security.
Budorin advocated for a more holistic approach, similar to that of traditional industries, which includes supply-chain security, operational security, and blockchain-specific security assessments. He noted that these practices are mandatory in large Web2 companies, suggesting that the crypto industry should follow suit to enhance its security posture.
While the overall approach to crypto security has remained unchanged, there have been some improvements in post-hack security responses. Budorin pointed out that the security firm Chainalysis has introduced near real-time blacklisting of stolen funds, which is a step toward progress in crypto security. Previously, Chainalysis would blacklist funds within three days, allowing hackers ample time to launder the stolen money through exchanges.
On February 21, the Bybit hack resulted in the theft of $1.4 billion in crypto through a vulnerability in the Safe wallet. This incident became the largest crypto hack in history. Following the hack, the malicious actors successfully laundered 100% of the stolen funds within just 10 days.
Ask Aime: "Is the crypto industry's security approach up to par after the largest hack in history?"
Although faster blacklisting is a positive development, it does not address the deeper structural risks within the industry. Budorin emphasized that, in terms of cybersecurity practices, nothing has fundamentally changed.
In April 2025, blockchain security firm PeckShield reported that the crypto space experienced nearly $360 million in digital assets stolen across 18 hacking incidents. This represents a 990% increase compared to March, when crypto losses due to hacks totaled about $33 million. The largest portion of the losses in April came from an unauthorized Bitcoin transfer.
On April 28, blockchain investigator ZachXBT flagged a suspicious transfer of $330 million in BTC. The investigator later confirmed that the transfer was a result of a social engineering attack targeting an elderly individual in the United States.
