Bybit Hack: A Big Crypto Robbery and Quick Money Laundering

The Big Heist

In February 2025, a huge robbery happened in the world of cryptocurrency. Bybit, a big crypto exchange, lost about $1.4 billion[1][3]. This was the biggest crypto hack ever! The hackers found a way to bypass security checks and transfer a lot of Ethereum to a secret address[1]. What’s even more surprising is that they managed to clean, or launder, all the stolen money in just 10 days[1].

How the Hack Happened

The hackers targeted a special kind of wallet called a cold wallet, which is usually very safe. But they tricked the system by changing the smart contract logic while showing the correct wallet address. This way, they could control the cold wallet without setting off alarms[1]. They stole 401,347 ether and other Ethereum-based tokens, which was worth over $1.4 billion[3].

What Happened to the Market

When people heard about the hack, the price of Ethereum dropped from $2,823 to $2,685[1]. This shows that people were worried about the safety of their digital money. But Bybit said that users’ money was safe and that the exchange could cover any losses from its own money[3]. This hack also shows that crypto robberies are becoming more common. In 2024 alone, over $1.49 billion was lost to hacks[1].

How the Money Was Cleaned

We don’t know the exact details of how the hackers cleaned the stolen money, but they did it very quickly and efficiently. Usually, cleaning stolen cryptocurrency involves turning it into real money using different methods, like using decentralized exchanges or mixing services. The fact that they cleaned all the money in just 10 days shows that they had a very good plan and a big network to help them[1].

What We Can Learn

A Strong Message

The Bybit hack shows us that cyber threats in the crypto world are getting more and more sophisticated. It’s really important to have strong security measures, like using multi-signature approvals and non-custodial wallets, to protect our digital money[5]. As the crypto industry grows, so do the attacks. The hackers were able to clean a huge amount of money very quickly, which shows that we need better rules and cooperation between exchanges to stop illegal transactions[5].

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Sources:
– Fintech Weekly
– NetSource One
– Morningstar
– Lizedin
– S&P Global