Cryptocurrency exchange Bybit experienced the largest hack in history on February 21, with North Korea's Lazarus Group being named the prime suspect in the $1.4 billion exploit. In a unique crisis management strategy, Bybit decided to honor all user transactions and maintain open withdrawals. CEO Ben Zhou assured users that the exchange would secure liquidity through loans rather than immediate Ether purchases. On-chain data indicated an inflow of approximately 100,000 ETH from exchanges like Binance and Bitget, with both exchanges taking measures to blacklist the hackers' wallets. Following the hack, Bybit's total asset balance dropped significantly, losing $2.535 billion, which reduced its reserves to $5.387 billion. Assets like Ethereum and Bitcoin were notably affected. Data platform Arkham Intelligence offered a bounty for information on the hackers, and an investigator linked the exploitation to Lazarus. Despite concerns regarding Bybit's solvency, Zhou claimed that user funds are fully backed and that the exchange is managing the situation effectively, receiving praise for their communication efforts.

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