Bybit News: $1.5 Billion Stolen in Major Security Breach; Institutions Aim to Mitigate Risks as They Enter Crypto Market

In a major blow to the cryptocurrency industry, Bybit, the world’s second-largest crypto exchange by trading volume, has faced a significant security breach resulting in the theft of $1.5 billion. The incident has raised concerns about the security measures in place at crypto exchanges and the risks associated with entering the crypto market. As institutions continue to enter the space, they are seeking ways to mitigate these risks.

Bybit Hack: $1.5 Billion Stolen in Security Breach

The world’s second-largest cryptocurrency exchange by trading volume, Bybit, faced a significant security breach where an attacker exploited security controls during a routine transfer from an offline ’cold’ wallet to a ’warm’ wallet. The incident involved a home-grown Web3 implementation using Gnosis SAFE and triggered around 350,000 withdrawal requests.

Institutions Seek to Derisk as They Enter Crypto Market

During the DAS conference focused on institutional adoption of crypto, the Bybit hack was mentioned multiple times. ZachXBT, a prominent onchain expert, commented on the hack, stating that the time spent freezing funds after the incident was eye-opening. He also expressed concern about the industry’s vulnerability to exploits and hacks, questioning whether the industry will fix the issue itself or if government regulations will be needed to address it.