Bybit Strengthens Institutional Safeguards with Zodia Custody Partnership

In the wake of a significant hack, Bybit has taken proactive steps to enhance the security of its institutional clients’ assets.

Bybit Teams Up with Zodia Custody for Segregated Asset Storage

Cryptocurrency exchange Bybit has partnered with Zodia Custody to offer segregated asset storage for institutional clients. This collaboration comes after Bybit lost $1.45 billion in a February 2025 hack, prompting the exchange to strengthen its institutional safeguards. Zodia Custody ensures full asset segregation, backed by Standard Chartered and SBI. The new custody deal removes the need for institutional clients to pre-fund accounts, reducing exchange-related risk. Bybit now provides independent custody models to serve its institutional clients, enhancing the security of their assets.

DeFi TVL Declined 27% in Q1 2025; AI and Social dApps Drove Growth

The first quarter of 2025 saw a turbulent period for web3, with AI and social decentralized applications (dApps) gaining traction. However, decentralized finance (DeFi) suffered a sharp decline, with the total value locked (TVL) falling 27% to $156 billion, according to DappRadar’s Q1 2025 report. This decline was attributed to several high-profile security breaches, falling cryptocurrency prices, and macroeconomic uncertainty. Notably, Bybit, an exchange, suffered a $1.4 billion exploit linked to the North Korean hacker group TraderTraitor. The exploit involved the theft of 401,000 Ethereum (ETH), which was converted to Bitcoin (BTC) and other assets. Additionally, ETH declined by 45% over the quarter, further affecting DeFi’s position. Berachain (BERA) was an exception, growing due to its mainnet launch and token distribution event.