The ByBit hack is a warning for the security and safety processes of organizations and exchanges in 2025. The scale of the damage of $1.4 Billion is an enormous figure, setting a new record in the history of the market. Many investors draw parallels to the FTX hack in November 2022, just after FTX declared bankruptcy.

Here are the observations from BeInCrypto on this concern and the opinions of industry experts.

ByBit becomes the largest hack in the history of the market

To date, the ByBit hack is reported to be carried out by the Lazarus group. This North Korean hacker group has carried out numerous attacks on the crypto industry from 2017 until now. It can be seen that the damage to ByBit is the largest, with over $1.4 Billion, more than double the previous Ronin hack carried out by the same group.

At the end of 2022, after FTX declared bankruptcy, the exchange was said to have been hacked. The investigation is being led by the National Cryptocurrency Enforcement Team of the U.S. Department of Justice. According to the bankruptcy filing, the amount the perpetrator stole from FTX was around $372 Million.

The ByBit hack is a sudden event occurring while the exchange is still operating normally, being one of the most liquid trading platforms in the market. The context is completely different from FTX being on the verge of declaring bankruptcy.

"Finally received my FTX payout. It's been a long 2.5 years but glad to get the money back. Just deposited it into ByBit, what else is there to look forward to?" - Investor Taiki Maeda shared.

ByBit is completely different from FTX

With the enormous amount of damage, investors rushed to withdraw funds from ByBit immediately after the news broke, raising concerns about ByBit's ability to withstand the situation.

"Nearly $1.5 Billion stolen from ByBit. Largest hack in crypto history. FTX 2.0?" - Rekt Fencer commented.

However, ByBit's handling is showing differences, with the view that the handling that just occurred within 12 hours of the hack is setting a new standard for crisis management in this industry. Although the damage is still not recoverable, investors can still withdraw their funds (albeit with a longer processing time).

"Ben and the Bybit team reacted incredibly quickly, collaborating with partners and most importantly, customers. Within 30 minutes of the hack being announced, Ben was on X - not just posting updates, but hosting a live stream to explain the entire situation. Many thought this would be FTX 2.0. Instead, this is a textbook case study in crisis management, communication, and execution. The Chinese CEX founders are truly different." - 0xJeff - Former member of TheSpartanGroup - assessed.

0xJeff said that Bybit's response was decisive. Although they lost $1.46 Billion, an enormous amount, the exchange's operations were not affected, proving their risk management strategy was strong enough to withstand immense pressure. Even more surprisingly and interestingly, Binance & Bitget have lent a large amount of ETH to Bybit to boost liquidity, demonstrating the support between competing players, a rare occurrence in this industry but beneficial for all in maintaining trust.

Sharing the same view as 0xJeff, Casey Taylor - Head of Global Support at Dragonfly - said that ByBit has handled the crisis communication very well.

"Bybit just provided a masterclass in crisis communication after experiencing the largest hack in crypto history. The situation is still unfolding, but they've succeeded in calming the market." - Casey Taylor commented.

ByBit is gaining the trust of many retail investors like Astronomer. If ByBit can recover the stolen funds and weather the crisis, the exchange may build even more confidence within the retail investor community.

"There's a huge difference in how you're handling this compared to what we've seen historically with FTX, Mt.Gox, and similar exchanges....And no, it's nothing like FTX at all. FTX had internal issues. This attack was from the outside." - Astronomer commented.

Also Read: ByBit Exchange Review: A Reputable and Secure CEX for All Investor Levels

Subscribe to the BeInCrypto Newsletter to stay updated on the latest analysis, news, and developments in the financial markets and the crypto industry.