The cryptocurrency exchange Bybit has implemented a series of enhanced cybersecurity measures following a massive hack that occurred in February 2025, resulting in losses of $1.5 billion — the largest incident of its kind in the industry’s history. Despite the core parameters and security infrastructure remaining intact, the company has initiated a comprehensive reorganization of its protective systems.
This is reported by Business • Media
Security Audits and Strengthening Wallet Protection
Immediately after the incident, Bybit initiated a thorough analysis of its processes and systems. Within a month of the hack, nine independent security audits were conducted. As a result, over 50 new recommendations and measures, developed by both internal experts and external specialists, have been implemented.
Particular attention was paid to strengthening asset storage systems. Stricter procedures have been introduced for cold wallets, including an updated Operational Safety Procedure (OSP) authorization process with full expert oversight, Multi-Party Computation (MPC) based protection, and the consolidation of Hardware Security Modules (HSM) to enhance hardware security.
Information Security and Operational Recovery
Bybit has improved its information security by implementing default encryption for all communications, including data exchanges outside of client operations. File systems have been optimized to protect data at rest. The exchange has achieved ISO/IEC 27001 certification, which is the highest international standard for information security risk management and is widely adopted by financial institutions.
“In the realm of security, we are only as strong as our weakest link. Over the past two months, we have doubled our efforts to strengthen the platform and procedures in response to the evolving security landscape. We will continue to provide safe, reliable, and user-friendly trading solutions that meet our customers’ expectations,” said Bybit co-founder and CEO Ben Zhou.
Following the hack, Bybit demonstrated a rapid response: within the first 12 hours, the exchange remained fully operational and processed a record number of withdrawal requests. All losses were promptly reimbursed, and customer funds were secured. Additionally, active efforts are ongoing to recover the stolen assets through the Lazarus Bounty platform, where over $2.3 million in rewards have already been issued.
The company has announced full transparency, implemented new reserve verification procedures, and regained its leadership position in the centralized exchange market, topping the capital inflow rankings in March. A report from Kaiko confirmed Bybit’s liquidity recovery within 30 days following the incident.
This incident has served as an important signal for the entire crypto industry. Centralized exchanges are expected to reassess their approaches to security and risk management to stay ahead of new cyber threats.