ByBit Hack Fallout: $280M Vanishes Into Untraceable Wallets, Boosting Non-Custodial Adoption

In the wake of February’s staggering $1.4 billion ByBit exchange hack, a chilling development has emerged: $280 million of stolen funds—primarily Ethereum—has disappeared into untraceable wallets. Blockchain forensic experts confirm the near-total evaporation of these assets, signaling sophisticated obfuscation techniques like cross-chain bridging. This incident is accelerating demand for non-custodial wallet solutions as traders seek to reclaim control over their digital assets.

$280M From ByBit Hack Goes Untraceable, Fueling Demand for Non-Custodial Wallets

The aftermath of February’s historic $1.4 billion ByBit exchange hack takes a darker turn as $280 million of stolen funds vanish into untraceable wallets. Forensic analysts confirm the disappearance of these assets—predominantly Ethereum—despite ByBit’s initial transparency efforts. "When liquidity vanishes this completely, it typically indicates sophisticated chain-hopping or cross-chain bridging," noted blockchain investigator Markus Filenkov.

ByBit CEO Ben Zhou’s public disclosures about the breach set a new standard for exchange accountability, but the vanishing act underscores systemic vulnerabilities. The incident has triggered a 47% weekly surge in downloads for non-custodial solutions like Best Wallet, according to AppAnnie data. "This isn’t about distrust—it’s about verifying what you own," said crypto veteran Andreas Merten during a Zurich meetup.

ALPACA Leads $225M Crypto Liquidation Storm as Altcoins Tumble

Crypto derivatives markets faced a brutal reckoning as $225 million in Leveraged positions evaporated within 24 hours. ALPACA became the epicenter of the bloodbath, recording $45.73 million in liquidations alone—including a single $3.98 million position obliterated on Bybit.

The carnage swept across altcoins with surgical precision. XRP, SUI, and SOL joined ALPACA in the liquidation hall of shame as 124,000 traders watched portfolios disintegrate. market mechanics turned predatory when a violent short squeeze triggered domino-like position closures.

Bybit’s ALPACAUSDT pair hosted the most spectacular failure, but the pain spread universally. The event underscores crypto’s perpetual tension between opportunity and annihilation—where 100x dreams meet margin calls in the blink of a price swing.