07 March Lessons from Hack Bybit: When Cryptocurrency is a Good Feed

BYBIT has been hit by a clean, historic hack of USD 1.46 billion due to malicious software that operates trading systems. The perpetrator is suspected to be North Korean hacker group Lazaro.

The money just leapt out of the floor and the hackers quickly cleared the traces through decentralized floors, cross-chain bridges and money mixing services like tornado cash. Some of the properties are frozen, but tracing is still very difficult.

Not only in this case, but many criminal groups and organizations have been suspended to use cryptocurrencies to manipulate financial management and fund shaded activities. Crypto brings financial freedom, but it also brings government headaches due to a more sophisticated money laundering move.

What happened to Hack Bybit?

On February 21, 2025, BYBIT, the world’s second largest crypto trading floor, will enter history with BYBIT, costing $1.46 billion. The Lazarus Hacker Group (related to North Korea) used malware to interfere with Bybit’s transaction approval process, and poured money directly into your wallet. This is the biggest crypto theft ever, surpassing all other popular hacks in the financial industry.

It is worth mentioning that this huge amount is stored in a single wallet and creates weaknesses. If Bybit is applying more security measures, such as multi-layer authentication, anomalous transactions, or splitting properties into cold storage, then there is probably no incident. Anyway, Bybit has also committed to taking responsibility and ensuring that users are not affected.

Dirty money is still “washed” everywhere
After the stolen, the hackers launched a very complicated money laundering campaign. First, to avoid intervention from publishers, stolen tokens (such as Steth and Meta) are converted to ETH via the dex floor. They then used “layering” techniques – spreading small amounts of money across hundreds of intermediaries, disrupting the tracking process.

Hackers also use cross-chain bridges to move money between different blockchains, making research difficult. Some of the money is sent via a mixed money service such as Tornado Cash, breaking the link between the sender and the recipient completely. So far, about $335 million has been washed, but $900 million is still in the hands of hackers.

However, blockchain analytics companies and authorities are still actively monitoring. Some exchanges have frozen assets related to hackers, but most of the money is still “circulated.” Cat and mouse game between hackers and authorities has not fallen yet.

When Crypto is a crime tool

Hackbybit is just a classic example of how organizations are banned (such as North Korea, Iran, Russia) can use code to avoid international sanctions. They use the anonymity of blockchain, dex floors and cross-chain bridges to move money without traditional banks.

With money theft and trading services, there is no need for KYC (ID verification) and peer-to-peer market (P2P) to remain a major gap for criminals. This presents a major challenge when managers must balance preventing illegal activities and do not lose the freedom that cryptography offers.

in short,: Hack Bybit is a wake-up bell for the crypto industry. It shows that no matter how strong and transparent blockchain technology is, the bad guys are willing to exploit gaps for profit. Governments and organizations need to strengthen cooperation to protect users, but ensure that codes are guaranteed on their first mission to provide financial freedom without being abused by illegal activities.

Always be vigilant, give careful security, never subjective!

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As someone with deep experience in cross-chain crypto exchanges within Telegram mini-apps, I’d like to share my insights on the current state of crypto security and key measures to prevent cyber attacks.

The recent hack of the Bybit Exchange on February 21, 2025, has once again highlighted the significant impact of cyber attacks on the cryptocurrency market.

This incident – which resulted in the theft of approximately $1.5 billion worth of Ethereum (ETH) – stands as the largest digital heist in cryptocurrency history.

Let’s examine some interesting statistics and data surrounding cyber attacks in the crypto space and their consequences.

Scale and frequency of attacks and market impact

The Bybit hack is part of a worrying trend of increasing cyber attacks on cryptocurrency platforms.

In 2024, North Korea-linked hackers alone stole approximately $1.34 billion in 47 incidents, a 102.9% increase from the $660.5 million stolen in 20 incidents in the previous year.

The Bybit hack in 2025 has already surpassed the entire amount stolen by North Korea in 2024 by nearly $160 million.

The immediate market reaction to the Bybit hack demonstrated the volatility that such incidents can cause, including the following.

• ETH dropped 4.2% from $2,828 to $2,708 within minutes of the announcement.
• A brief rebound of 3.4% followed, bringing the price back to $2,759.

The initial drop in the ETH price was followed by a quick rebound, fueled by speculation that Bybit would have to buy back ETH on a one-to-one basis to compensate affected users.

Bybit has secured a bridging loan for 80% of the lost ETH, as clarified by Ben Zhou, co-founder and CEO of Bybit, during a live stream.

He also stated that Bybit had no immediate plans to buy large amounts of ETH on the spot market.

This news caused a rapid shift in market sentiment from bullish to bearish, due to concerns that the hacker would sell the stolen ETH and a general increase in risk aversion among investors.

Types of cyber attacks

While previous major hacks have often targeted vulnerabilities in smart contract code or cross-chain bridges, the Bybit incident represents a shift towards targeting the human element.

• The attackers used social engineering tactics to compromise the exchange’s user interface.
• They manipulated cold wallet signatories to authorize malicious transactions.

This trend is consistent with research showing a shift from traditional security attacks to more sophisticated methods.

In terms of the amount stolen by type of victim platform, 2024 also showed interesting patterns.

In most quarters between 2021 and 2023, DeFi (decentralized finance) platforms were the main targets of crypto hacks.

It’s possible that DeFi platforms were more vulnerable because their developers tend to prioritize rapid growth and getting their products to market over implementing security measures, making them prime targets for hackers.

Although DeFi still accounted for the largest share of stolen assets in Q1 2024, centralized services were the most targeted in Q2 and Q3.

This shift in focus from DeFi to centralized services highlights the increasing importance of security mechanisms commonly exploited in hacks, such as private keys.

Private key compromises accounted for the largest share of stolen crypto in 2024 – at 43.8%.

For centralized services, ensuring the security of private keys is critical as they control access to users’ assets.

User education – A critical component

While exchanges bear significant responsibility for security, user education plays a critical role. Comprehensive education initiatives should equip users with the knowledge to do the following.

• Create and manage strong, unique passwords
• Recognize social engineering tactics and phishing attempts
• Understand the importance of regular backups

In conclusion, the Bybit hack is a stark reminder of the ongoing security challenges in the cryptocurrency space. As the market continues to grow, so too will the methods used by hackers.

It is imperative that the industry stays ahead of the curve by adopting advanced technologies, fostering collaboration and continuously educating users.

By implementing comprehensive security measures and remaining vigilant, we can work towards creating a safer environment for all participants in the crypto ecosystem.

Valeriy Yasakov is the CEO of The One, a pioneering mini app on Telegram designed for crypto trading. A visionary entrepreneur, Valeriy combines technical expertise with strategic foresight to drive advances in decentralized financial and trading solutions through his leadership roles.

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No matter how good you are as a trader and how great your trading strategy is performing, sooner or later, you will experience losing trades. What separates the professional from the amateur trader is how well he can handle losses.

In this context, one of the most significant hurdles for traders is learning to discern between unavoidable losses and costly, preventable mistakes. This distinction is so important for building a resilient trading mindset and long-term success.

I recorded a podcast about this very topic which you can find here:

Listen in browser: https://www.podbean.com/ew/pb-phppu-172f57c

Spotify: https://open.spotify.com/episode/60gDmFCgdM2uYFFMKhDdpE?si=s-rCElrrRia7LvvdQ7MJ0A

1. The Nature of Trading Losses: Good vs. Bad

Every trader will face losses – it’s simply part of the game. However, not all losses are equal. Distinguishing between “good losses” and “dumb losses” can transform how you perceive and learn from setbacks.

Good Losses: A Part of the Plan

Good losses occur when you adhere to your trading strategy and follow your rules, but market conditions don’t favor you. These losses are expected, even in a solid trading system. Over time, these “good losses” don’t impede profitability but are part of a larger, successful approach.

Tip: If you’re new to trading, one of the best ways to become comfortable with the inevitability of good losses is to backtest your strategy. Spend a few weekends gathering data from various markets. This practice will reveal that you can lose 50% of your trades and still remain profitable in the long term. This realization can be an eye-opener and provide confidence in sticking to your strategy during tough times.

Dumb Losses: The Cost of Error

Dumb losses are preventable and occur when you deviate from your trading plan. These can result from emotional trading, entering without a clear plan, or ignoring your established risk management rules. Recognizing and minimizing these errors can help protect your capital and keep you on the path to steady growth.

2. The Process-Oriented Mindset

Instead of evaluating success purely by profit and loss, a process-oriented trader measures performance by adherence to their trading plan. Did you follow your entry and exit strategy? Were your trade sizes and timing appropriate? This perspective helps you maintain consistency, refine your approach, and avoid burnout.

Reflect and Review: After each trade, especially the losing ones, reflect on these questions:

• Did I follow my trading rules?

• Was the trade pre-planned or impulsive?

• Were there hidden influences at play, such as stress or market hype?

This reflective practice helps you spot behavioral patterns, such as fear of missing out (FOMO) or revenge trading, keeping you accountable and disciplined.

3. Weekly Improvement

One effective method for growth is to identify one key area to improve each week. For instance, if you notice a habit of overtrading when bored, write it down and place a reminder next to your trading screen. Make it your mission for the next week not to repeat that behavior. Over time, these small, targeted adjustments can lead to significant progress.

4. Avoiding Arbitrary Return Goals

Setting rigid financial goals like “I need to make 10% this month” can put undue pressure on you to force trades that aren’t aligned with market conditions. Unlike a 9-5 job, trading requires flexibility and adaptability. The market dictates opportunities, not your calendar.

Best Practice: Focus on taking quality trades as they come, rather than trying to hit arbitrary targets. This reduces forced decisions and allows you to remain aligned with your strategy.

5. The Value of Stepping Away

A common mistake among traders is the urge to constantly be in a trade, even if there isn’t a solid setup. This often leads to unnecessary and impulsive trades. Knowing when to step back and take a break can be just as important as entering a trade. Breaks help clear your mind, reset your strategy, and improve discipline.

Signs It’s Time for a Break:

6. Recognizing and Mitigating Excessive Risk

Sometimes, traders take outsized risks due to overconfidence or a desire to recover quickly from losses. This behavior can be destructive and counterproductive to long-term success. If you notice yourself taking bigger risks than usual, pause and reflect on the underlying motivation. Are you trying to “catch up” after a bad streak, or feeling pressured by market or social factors?

Adjustment Strategy:

Actionable Takeaways for Every Trader

To wrap up, here are six steps to integrate into your trading routine today:

1. Differentiate losses: Understand and accept “good losses,” but strive to minimize dumb ones.

2. Adopt a process-oriented approach: Focus on executing your strategy well, not just the outcome.

3. Reflect regularly: Analyze your trades in your trading journal to spot patterns and areas for improvement.

4. Avoid rigid profit targets: Take what the market offers and don’t force trades.

5. Control external influences: Only incorporate tips that align with your strategy.

6. Mitigate excessive risk: Have a position size plan ready that tells you how much to risk per trade.