**Bybit Faces $1.4B ETH Heist Linked to Lazarus Group; Users Flood Exchange with Withdrawal Requests, 99.994% Processed Quickly**
In a shocking turn of events, Bybit, one of the largest cryptocurrency exchanges globally, fell victim to a staggering $1.4 billion Ethereum (ETH) heist—the biggest crypto theft ever recorded. This breach led to an overwhelming surge in withdrawal requests, with over 350,000 submitted in just 10 hours. Despite the chaos, Bybit’s CEO, Ben Zhou, reassured users that their funds remain safe. The exchange is actively collaborating with blockchain experts and leveraging its treasury and partner loans to trace and recover the stolen assets.
**The Largest Crypto Heist in History Unfolds**
On February 21, 2025, hackers managed to breach Bybit’s offline Ethereum cold wallet, stealing around 400,000 ETH. During a livestream, CEO Ben Zhou explained that the attack exploited the wallet’s multi-signature approval process. Blockchain investigator ZachXBT, in partnership with Arkham Intelligence, identified the perpetrators as North Korea’s Lazarus Group, notorious for previous high-profile crypto thefts, including the Axie Infinity ($617 million) and Harmony Horizon ($100 million) breaches. Experts like Rob Behnke from Halborn have described the Bybit incident as potentially the largest digital heist ever documented.
According to Zhou, the attackers manipulated the smart contract logic while presenting a legitimate signing message, enabling them to reroute funds to an unknown wallet. The investigation is ongoing, with cybersecurity firms aiding Bybit in tracking the stolen assets. Recent updates indicate that the Lazarus Group is actively laundering the stolen ETH. Zhou confirmed that the hackers are converting the stolen Ethereum into Bitcoin using Chainflip. Blockchain data from Lookonchain shows that the funds were transferred to the wallet address “0x33d0…8F65” before conversion, which is also linked to a recent $69 million hack of the Phemex exchange. On-chain investigator ZachXBT has verified that both the Bybit and Phemex breaches can be traced back to the Lazarus Group.
**Unprecedented Withdrawal Surge Amid Market Turmoil**
In the aftermath of the breach, Bybit experienced its highest withdrawal volume ever. Zhou reported that over 350,000 requests came in within just 10 hours, with only about 2,100 still pending. “Our entire team has been working around the clock to process withdrawals and assist our clients,” Zhou stated. Bybit confirmed that an impressive 99.994% of withdrawal requests were completed, ensuring users had access to their funds, especially in Bitcoin.
Since the hack occurred just 10 hours ago, Bybit has seen an unprecedented number of withdrawal requests, totaling over 350,000, with only around 2,100 left to process. Overall, 99.994% of withdrawals have been successfully completed. If… — Ben Zhou (@benbybit) February 22, 2025
The hack sent ripples through the crypto market, causing Ethereum’s price to plummet from $2,823 to $2,685 within hours.
