While cryptocurrency advocates have long touted the security of blockchain technology, the recent Bybit hack has shattered that illusion in spectacular fashion. A staggering $1.5 billion vanished from Bybit’s Ethereum cold wallet on February 21, 2025, making it the largest crypto theft in history. The culprit? North Korea’s infamous Lazarus group, also known as TraderTraitor. They’re getting pretty good at this.
The hackers weren’t amateurs. They compromised a developer’s Mac workstation, snagged AWS credentials, and injected malicious code into Safe{Wallet}’s JavaScript frontend. One phishing attack later, Bybit’s CEO unwittingly approved their payday. Classic social engineering meets high-tech theft.
The biggest crypto hacks aren’t about breaking code—they’re about breaking people. Tech is only as secure as its users.
The stolen loot—401,346 Ethereum tokens—didn’t stay in one place for long. The hackers quickly converted most to Bitcoin and scattered the funds across an astounding 9,117 wallets containing 12,836 BTC. Talk about spreading your bets.
Despite their efforts, blockchain analysts can still trace 88.87% of the stolen assets. Only about 7.59% has truly disappeared into the digital abyss. The attackers utilized decentralized exchanges and no-KYC instant swap services to move their ill-gotten gains.
North Korea’s fingerprints were all over this heist. The FBI made the connection official on February 26. Apparently, Kim Jong Un needed to fund more missiles. The regime now ranks as the third-largest government Bitcoin holder with 13,562 BTC. Nuclear programs don’t fund themselves, folks.
The market reacted predictably—Bitcoin dropped 20% from January’s all-time high. Panicked investors yanked nearly $10 billion from Bybit within hours. Fear is contagious.
Recovery efforts are underway, with Bybit offering a $140 million bounty for assistance. They’ve already paid out $43 million to 19 bounty hunters. Hackers also employed THORSwap to further obscure the origin of their stolen cryptocurrency, making tracking even more challenging for investigators. The thieves leveraged digital signatures to authenticate their fraudulent transactions, exploiting the very cryptographic security meant to protect users. Meanwhile, Bitget’s CEO extended a friendly 40,000 ETH interest-free loan. Nice to have rich friends in a crisis.
As blockchain analytics firms track the stolen funds, one thing’s clear: even the most “secure” crypto systems are only as strong as their weakest human link. And humans, as we keep proving, are pretty easy to hack.
