Around $280M of the total of $1.4B lost in the ByBit hack on February 21, 2025, has now become untraceable, reiterating the importance of non-custodial storage options like Best Wallet.
Lessons from the Biggest Crypto Theft in History
ByBit’s co-founder and CEO, Ben Zhou, was the first to inform the public of the initial breach in an X post. The hack went on to become the largest cryptocurrency exchange theft in history, with approximately $1.48 billion worth of mostly Ethereum stolen.
However, Bybit assured its users that their assets were secure and that the exchange was still solvent despite the breach. ByBit continued to detail the entire timeline of the incident, keeping track of the compromised wallets and the assets on the move.
But then the assets started ‘going dark.’
Where Did the Money Go?
The hackers, believed to be the North Korean Lazarus Group have already managed to launder over 20% of the over 400k $ETH they got away with.
This appears to have been achieved using decentralized exchanges like THORChain to rapidly swap Ethereum for Bitcoin and disperse it across thousands of wallets to obfuscate their trail.
That’s roughly $280M that’s lost for good. Fortunately, most of the stolen $ETH is still traceable, for now.
Jumping on that glimmer of hope, ByBit has started an enhanced Bug Bounty program, calling on ‘the brightest minds in cybersecurity and crypto analytics’ to track and recover the stolen funds. They’re putting up $140M or 10% of the bounty as a reward.
If nothing else, the incident highlights the inherent risk of using custodial platforms like ByBit.
Are Non-Custodial Wallets Safer Than Custodial Ones?
BYBit wallets are custodial. That means Bybit holds and manages users’ private keys and funds rather than the users holding their private keys themselves, as in non-custodial wallets. As such, you’re relying on Bybit for security and safeguarding your assets.
While the exchange’s insurance and compensation policies intend to cover the loss of funds, the breach of trust and the potential vulnerability of holding assets on a custodial platform have become more apparent than ever.
The moral of the story is, even the top global custodians can sometimes lose to the cybercriminal underworld.
This means one thing: you have to look after your own crypto, and a non-custodial wallet like Best Wallet may be the only way to go.
Best Wallet ($BEST) – Tighter Security and Lower Fees
A top non-custodial hot wallet, Best Wallet, gives you the keys to your own crypto castle.
If ByBit users had kept their crypto in a non-custodial wallet like Best Wallet, they wouldn’t have been at risk of losing their funds due to the exchange’s hack.
Even if an exchange is compromised, assets stored in non-custodial wallets remain secure because the exchange doesn’t have the essential private keys.
Best Wallet’s security features also include passcode, 2FA, biometric security, and Fireblock MPC’s top security protocols.
The platform offers seamless cross-chain swaps and multi-chain support for protocols like Ethereum, Bitcoin, BNB, Polygon, and 50 others to come.
Active traders on Best Wallet should also check out the $BEST presale, which currently ranks as one of the best presales in the crypto space, accumulating over $11.8M so far.
$BEST currently sits at $0.02485 and is guaranteed to increase during the presale phase and, most likely, post-launch.
The dynamic staking offers an APY of 127%, which drops as more stakers join the pool. So, joining now may benefit your ROI.
Important note: $BEST holders get a variety of exclusive benefits, including lower fees, governance rights, influencing the project’s direction, and exclusive access to early features and the best presales for 2025.
If you want to join the presale, check out our ‘how to buy $BEST’ guide.
Just keep in mind that this isn’t financial advice. The crypto market is volatile, and there are no guarantees. Always DYOR (Do Your Own Research) before investing.
