In response to a large-scale security breach and subsequent theft of more than $1.4 billion in Ethereum (ETH), Bybit is offering a 10% bounty for recovery of the stolen funds. This unique step is to incentivize the global crypto community to pursue the thieves and obtain the assets.
The Unprecedented Heist
Bybit was subjected to a major security breach on February 21, 2025, with this incident being one of the largest hacks in cryptocurrency history. Roughly 400,000 ETH, then worth more than $1.4 billion, was drained from the exchange’s wallets by the hackers. The event sent shockwaves through the crypto industry, raising serious questions about security protocols and the vulnerability of digital assets.
Bybit’s Immediate Reaction
Bybit has taken decisive measures to limit the impact of the breach on users and to regain their confidence in the platform:
- Total Indemnification of Affected Users: Bybit has pledged to fully indemnify all users against any losses incurred due to the above-mentioned hacking incident. The exchange has already restored its Ethereum reserves through over-the-counter purchases and large-scale crypto loans to ensure that customer funds are fully protected.
- Creation of the 10% Bounty Program: To retrieve further stolen assets quickly, Bybit has created a bounty program promising a reward of up to 10% for any recovered funds. This initiative aims to galvanize cybersecurity experts, blockchain analysts, and the entire crypto community to work together in tracking down and recovering the stolen Ethereum.
- Implementation of Enhanced Security Measures: The security of the exchange is under holistic assessment to identify and rectify vulnerabilities. Bybit promises to implement advanced security protocols to avoid such situations in the future and protect user assets.
How Community Mobilization Affects Industry
Call to action from Bybit reverberated throughout the cryptocurrency community, big-in-a-collective-trail-tracking-stolen-funds-concerned. Blockchain analytic firms, cyber security experts, and enthusiasts alike employ their know-how to track Ethereum’s movements among its wallets.Â
The wider debate has also been occasioned by the incident on the security of centralized exchanges and the need for common standards across the industry to protect digital assets. While the immediate response has been commendable from Bybit, this incident also highlights the persistent risk against which cryptocurrency trading and storage exist.
Way forward
Bybit shall prove itself to be a torchbearer as things get investigated. Besides, the exchange shall maintain transparency and security for users. The exchange is actively cooperating with law enforcement and industry partners to catch the perpetrators and recover the stolen funds. This is not a new incident that indirectly installs the role of respected institutions that can be maintained as safe-heaven vaults for high-security information.Â
Bybit foregrounds the incident with open and engaged recovery morale efforts within the community to set the stage for future precedents on how similar events will be addressed.Â
The efficacy of Bybit’s bounty program and the effort of the crypto community will be measured in the coming weeks being closely watched as they jointly advance towards the goal of restoring trust and security in the cryptocurrency ecosystem.
