On February 21, 2025, Bybit CEO Ben Zhou took to X to share a candid update following what he described as “the worst hack in history.” In his post at https://x.com/benbybit/status/1893199498966638630, Zhou announced that just 12 hours after the breach, Bybit had processed all withdrawal requests, restoring normal operations. This swift response highlights the exchange’s resilience amid a crisis that rattled the crypto community.

What Happened During the Bybit Hack?

The hack, which occurred earlier that day, targeted one of Bybit’s offline Ethereum wallets—commonly known as a “cold wallet” for its high security due to being disconnected from the internet. Despite this precaution, hackers managed to steal approximately 401,346 ETH, valued at around $1.4 billion at the time. Analysts, including those from TechCrunch, suggest this could be the largest crypto theft ever recorded, surpassing previous incidents like the Ronin Network ($624 million) and Poly Network ($611 million) breaches.

Zhou’s post didn’t dive into the nitty-gritty of how the breach happened, but he alluded to the sophistication of the attack in a follow-up livestream. He mentioned a vulnerability in the multi-signature (multi-sig) process—a security feature requiring multiple approvals for transactions—which the hackers exploited. The stolen funds were then moved to a “warm wallet” (an online storage system), making them easier to transfer out.

Bybit’s Response: A Race Against Time

In the aftermath, Bybit faced an unprecedented wave of withdrawal requests—over 350,000 in just 10 hours, as Zhou noted in an earlier post. That’s a staggering number, reflecting the panic that gripped users. Yet, by the time of his 6:51 PM PST update, 99.994% of these requests were completed, with only about 2,100 left to process. By 12 hours post-hack, Zhou confirmed that the withdrawal system was fully operational again, with no delays for any amount.

This rapid recovery wasn’t just about logistics; it was a statement. Zhou apologized to users and thanked them for their patience, promising a “full” update later—likely a detailed report on the breach and Bybit’s next steps. The exchange also moved 2.95 billion USDT (a stablecoin pegged to the U.S. dollar) from cold to warm wallets as a planned maneuver, reassuring users via X that “we are not hacked this time.”

How Did Users and the Community React?

The crypto world was buzzing. Posts on X praised Zhou’s transparency, with one user, @yudeewxy, highlighting his quick response—going live within an hour of the incident to explain the situation. This openness, they argued, curbed panic and rumors, showcasing Bybit’s accountability. Others, like @TheAnswerUSeek from related discussions, expressed frustration with past crypto projects, but Zhou’s proactive stance earned nods of approval from many.

Still, the scale of the hack raised eyebrows. With $1.4 billion siphoned off, questions lingered about Bybit’s security measures. Zhou himself shared a lighthearted glimpse into his stress levels via a WHOOP fitness tracker screenshot, revealing he hadn’t slept but was “too focused” to feel the strain yet. It’s a human touch that resonates in a high-stakes digital world.

What’s Next for Bybit?

Bybit’s ability to cover losses—Zhou claimed the exchange remains solvent, per Bloomberg—is a testament to its financial health. With total assets estimated at $16 billion before the hack, the $1.4 billion hit, while massive, didn’t sink the ship. The CEO also hinted at tracking the stolen funds, noting some were being bridged to Bitcoin addresses, a clue that recovery efforts are underway.

For users, the takeaway is clear: Bybit weathered a storm and kept withdrawals flowing, but the incident underscores the risks of centralized exchanges. Zhou’s promise of a full report suggests more answers are coming—perhaps details on strengthening security or compensating affected users. For now, the exchange stands as a case study in crisis management, balancing transparency with action in real time.

Why This Matters to Crypto Enthusiasts

This hack isn’t just Bybit’s story—it’s a wake-up call for the industry. As crypto grows, so do the targets on exchanges’ backs. Zhou’s response on X offers a blueprint: communicate fast, act faster, and keep users in the loop. Whether you’re a trader, investor, or just crypto-curious, this saga is a reminder to stay vigilant—and maybe double-check where your funds are parked.