When the Bybit hack, a major security breach at the cryptocurrency exchange Bybit that led to the theft of user funds. Also known as the Bybit wallet compromise, it was one of the most talked-about incidents in 2023 because it wasn’t caused by a smart contract flaw—it was a direct attack on the exchange’s internal systems. This wasn’t a case of users losing money because they clicked a bad link. This was a breach at the heart of a top-tier exchange, and it forced the whole industry to rethink how cold wallets, employee access, and multi-sig controls actually work.
The crypto exchange security, the systems and protocols used by platforms like Bybit, Binance, and Coinbase to protect user assets from theft and unauthorized access. Also known as exchange security protocols, it went from being an afterthought to the main focus overnight. Before the hack, many assumed that if an exchange had KYC, insurance, and a big brand name, they were safe. Afterward, it became clear that even the most polished platforms could have one weak employee, one misconfigured server, or one stolen API key that opened the door. The exchange hack, a targeted attack on a cryptocurrency platform’s infrastructure to steal digital assets. Also known as crypto exchange breach, it showed that security isn’t just about encryption—it’s about people, processes, and constant vigilance.
What followed was a wave of changes. Exchanges started requiring hardware security keys for every internal login. Withdrawal approvals became more layered, with mandatory delays and multiple team sign-offs. Some even began using decentralized custody solutions where no single entity holds the keys. The cryptocurrency theft, the illegal acquisition of digital assets through hacking, phishing, or insider fraud. Also known as crypto theft, it didn’t disappear—but the cost of pulling it off went way up.
You’ll find posts here that break down exactly how the Bybit breach unfolded, what user funds were affected, and how the exchange responded. You’ll also see deep dives into how other platforms have tightened their defenses since then. Some posts expose fake security claims by lesser-known exchanges. Others show you how to check if your own exchange has real multi-sig protection—or just marketing buzzwords. This isn’t about fear. It’s about awareness. If you’re holding crypto on an exchange, you need to know what’s really protecting your money. The Bybit hack didn’t just steal coins. It stole the illusion of safety. What comes next is up to you.
The Lazarus Group, backed by North Korea, has stolen over $2 billion in cryptocurrency since 2022 using advanced social engineering and frontend manipulation. Their heists target human trust, not code - making even multi-signature wallets vulnerable.
