Bybit Market Share Drops After $1.5B Security Breach
Bybit market share plummeted from 20% to 5% after a $1.5 billion hack. While it has slightly recovered, Binance has gained dominance. Authorities struggle to recover stolen funds.
Bybit Faces Market Share Collapse After Record $1.5 Billion Hack
Bybit, one of the largest crypto exchanges, has suffered a dramatic decline in market share following the $1.5 billion cold wallet breach that rocked the platform in February 2025. This attack, the largest exchange heist in history, has severely impacted Bybit’s standing in the crypto market.
Online advertising service 1lx.online
Bybit’s Market Share Drops, Binance Gains
According to Kaiko data, Bybit’s market share plummeted from nearly 20% on February 21—the day of the attack—to a low of 5% by March 2. However, as of March 9, the exchange has shown signs of recovery, climbing back to 9.04%.
Meanwhile, Binance emerged as the biggest beneficiary of Bybit’s struggles, with its market dominance surging to 62% in the immediate aftermath of the hack. However, this figure has since dropped to around 50%, suggesting a redistribution of market activity among multiple platforms.
How Hackers Drained Bybit’s Funds
On February 21, attackers exploited vulnerabilities in Bybit’s cold wallet system, executing a massive heist that resulted in the theft of $1.5 billion in Ethereum (ETH). The breach exposed weaknesses in Bybit’s security framework, raising serious concerns about the safety of funds stored on centralized exchanges.
Since the attack, law enforcement agencies and blockchain investigators have been racing against time to trace and recover the stolen assets. The notorious Lazarus Group, a North Korean-backed cybercrime organization, is believed to be behind the heist. This group is well-known for sophisticated laundering tactics, making fund recovery extremely difficult.
Laundering of Stolen Funds
Blockchain analysis firm Elliptic estimates that at least $300 million of the stolen funds have already been laundered, making asset recovery more complex. Given the rapid movement of crypto across decentralized platforms, the likelihood of reclaiming the full amount is shrinking by the day.
Online advertising service 1lx.online
As Bybit scrambles to regain trust, the incident highlights the ongoing risks of exchange vulnerabilities and the importance of robust security measures in the crypto industry.
Our creator. creates amazing NFT collections!
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)
Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.
Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).
Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)
Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)
