Lazarus Group Behind $1.46B Bybit Hack

On-chain security analyst ZachXBT has identified North Korea's Lazarus Group as the mastermind behind the recent $1.46 billion hack on cryptocurrency exchange Bybit. Arkham Intelligence, which launched a bounty campaign to uncover the culprits, confirmed ZachXBT's findings on February 21. The bounty offered 50,000 ARKM tokens, worth approximately $31,500, for credible information about the attackers.

The Bybit hack, which resulted in the theft of staked Ether (ETH) and other ERC-20 tokens, is now considered the largest crypto exchange hack to date, according to blockchain security firm Blockaid. ZachXBT quickly traced the stolen assets using on-chain data and submitted the evidence to Arkham, solidifying the Lazarus Group's involvement.

The scale of the theft sent shockwaves throughout the crypto industry, prompting swift responses from prominent figures and platforms. Justin Sun, founder of the Tron blockchain, stated that his network is collaborating with Bybit to track the stolen funds. OKX, another major crypto exchange, deployed its security team to assist Bybit in the investigation. KuCoin, a leading global exchange, publicly expressed solidarity with Bybit, emphasizing the importance of industry cooperation to combat cyber threats.

Amid concerns of market instability, several industry leaders sought to calm fears of widespread contagion. Coinbase executive Conor Grogan highlighted Bybit's resilience, noting that despite the hack, the exchange continued processing withdrawals and held over $20 billion in assets. Stani Kulechov, founder of decentralized lending protocol Aave, also weighed in, offering support and urging caution in response to the incident.

Security experts and community members shared practical advice to safeguard users' assets in light of the hack. "Quit," vice president of blockchain at Yuga Labs, posted several security recommendations, encouraging users to employ multisignature wallets, hardware wallets, and transaction simulations for enhanced safety. KuCoin reinforced the message, advising its users to enable two-factor authentication, use strong, unique passwords, and activate passkeys to prevent potential breaches.

As reported, the crypto industry witnessed losses totaling $1.49 billion in 2024 due to hacks and fraud, marking a 17% decrease from 2023. According to a report by blockchain security platform Immunef