Bybit Strengthens Bitcoin Liquidity After Massive Security Breach
By: cointurk|2025/05/08 06:15:07
0
Share
Following a significant security breach in February, the cryptocurrency exchange Bybit has seen a noticeable recovery in Bitcoin $ 96,911 liquidity. According to a report by market research firm Kaiko, the platform has returned to a state similar to its pre-incident status for Bitcoin trading. The Bybit Exchange Hack Incident On February 21, 2025, approximately 400,000 ETH were stolen, resulting in a loss of $1.5 billion. The attack exploited a multisig system vulnerability, allowing malicious transactions to be approved by cold wallet signers. The U.S. Federal Bureau of Investigation recently disclosed information indicating that the North Korea-backed Lazarus Group was responsible for the attack. Although the crypto market was shaken by the hack, the long-term effects were not lasting. Bybit quickly covered the reserve deficit caused by the event by obtaining ETH loans from several cryptocurrency companies and exchanges, thereby restoring confidence among investors. Kaiko’s report indicates that the liquidity drop following the hack has recovered. Institutional Trades and Market Developments After the security breach, a notable decline in user confidence was reported, with over 350,000 withdrawal requests impacting the system. Transaction volumes decreased, and market depth, particularly for Bitcoin, had diminished. However, Bitcoin liquidity quickly began to recover, rising from a market depth of 0.1% immediately following the incident to approximately 8% in March. Bybit regained approximately 7% of its market share, renewing investor trust. The platform’s liquidity was boosted by new security measures and a partnership with Zodia Custody. Rapid recovery also occurred despite trading policy changes in the U.S., contributing to global market uncertainties. Moreover, the Institutional Price Improvement (RPI) processes that started on February 20 enabled more favorable pricing for individual customers. This initiative helped maintain stability amid volatile market conditions, bringing a slow but positive recovery in altcoin liquidity. The 30 largest altcoins successfully reached over 80% of their previous market depth. In summary, post-hack investors still perceive Bybit as secure, and the exchange effectively managed the situation without suffering devastating setbacks. The examined report reveals that the company rapidly approached previous liquidity levels, establishing a stable trading environment. Security enhancements implemented by the platform, institutional trading strategies, and international market developments are factors that could influence investor decision-making processes. Readers might find it beneficial to stay informed about security measures if similar incidents occur.
You may also like

From Cash to Cryptocurrency: Moving Towards a Unified Regulatory Path for Illegal Payments
By establishing a framework based on the principle of "general law" and broadly defining the function of "payment tools," future innovations can be automatically included in the regulatory perspective, thereby breaking the passive cycle of "innovation-regulation-re-innovation-re-regulation" and guid...

Who will own the most Bitcoin in 2026
In this article, we will examine some individuals, companies, and wallets that have become crypto whales based on on-chain data and their own public statements, and investigate the amount of Bitcoin they hold.

A private feud lasting 10 years, if not for OpenAI's "hypocrisy," would not have led to the world's strongest AI company, Anthropic
What shapes the global AI landscape is not only the competition of technological routes but also a personal trauma that has never healed.

"Crypto Tsar" steps down: 130 days of political performance come to an end, how much of Trump's crypto promise remains?
The encryption czar has left, and Trump has muted.

From Utopian Narratives to Financial Infrastructure: The "Disenchantment" and Shift of Crypto VC
Financial infrastructure is the real reason that attracts venture capital investment in the cryptocurrency field.

A decade-long personal feud, if not for OpenAI's "hypocrisy," there would be no globally leading AI company Anthropic
Shaping the global AI landscape is not just a battle of technical paths, but also a wound of private trauma that has never healed

a16z: The True Meaning of Strong Chain Quality, Block Space Should Not Be Monopolized
Essentially, this attribute allows stakeholders to have a "virtual lane" within a high-throughput blockchain to ensure their transactions can be included.

a16z: The True Meaning of Strong Chain Quality, Block Space Should Not Be Monopolized
Essentially, this attribute allows stakeholders to have "virtual lanes" within a high-throughput blockchain, ensuring that their transactions can be included.

2% user contribution, 90% trading volume: The real picture of Polymarket
Is Polymarket a battleground for retail investors or an arena for institutions?

Trump Can't Take It Anymore, 5 Signals of the US-Iran Ceasefire
From Oil Prices and Elections to Secret Negotiations, Are the US and Iran Really Heading for a Ceasefire?

Judge Halts Pentagon's Retaliation Against Anthropic | Rewire News Evening Brief
The "Orwellian" Term Stymies Pentagon's Supply Chain Risk Label for Anthropic

Midfield Battle of Perp DEX: The Decliners, The Self-Savers, and The Latecomers
Hyperliquid has captured this wave of geopolitical market trends with commodity contracts. Decentralized exchanges are moving from internal competition within the crypto industry to a genuine alternative to traditional financial infrastructure, and this direction has only just begun.

Iran War Stalemate: What Signal Should the Market Follow?
Watch the Bond Market

Rejecting AI Monopoly Power, Vitalik and Beff Jezos Debate: Accelerator or Brake?
Can technological advancement be guided, or has it already gone beyond our control?

Insider Trading Alert! Will Trump Call a Truce by End of April?
Multiple Accounts Accurately Predict War, Earn $1.8 Million

After establishing itself as the top tokenized stock, does Ondo have any new highlights?
The total market capitalization of the global stock market is about $150 trillion, while the tokenized stocks market is currently only $10 billion in size, making it akin to a nascent super market that has just cracked the door open.

BIT Brand Upgrade First Appearance, Hosts "Trust in Digital Finance" Industry Event in Singapore
Discussing topics such as governance standards, compliance frameworks, and operational infrastructure within the context of the institutionalization process

OpenClaw Founder Interview: Why the US Should Learn from China on AI Implementation
In the US, using OpenClaw may get you fired; in China, not using it may get you fired
From Cash to Cryptocurrency: Moving Towards a Unified Regulatory Path for Illegal Payments
By establishing a framework based on the principle of "general law" and broadly defining the function of "payment tools," future innovations can be automatically included in the regulatory perspective, thereby breaking the passive cycle of "innovation-regulation-re-innovation-re-regulation" and guid...
Who will own the most Bitcoin in 2026
In this article, we will examine some individuals, companies, and wallets that have become crypto whales based on on-chain data and their own public statements, and investigate the amount of Bitcoin they hold.
A private feud lasting 10 years, if not for OpenAI's "hypocrisy," would not have led to the world's strongest AI company, Anthropic
What shapes the global AI landscape is not only the competition of technological routes but also a personal trauma that has never healed.
"Crypto Tsar" steps down: 130 days of political performance come to an end, how much of Trump's crypto promise remains?
The encryption czar has left, and Trump has muted.
From Utopian Narratives to Financial Infrastructure: The "Disenchantment" and Shift of Crypto VC
Financial infrastructure is the real reason that attracts venture capital investment in the cryptocurrency field.
A decade-long personal feud, if not for OpenAI's "hypocrisy," there would be no globally leading AI company Anthropic
Shaping the global AI landscape is not just a battle of technical paths, but also a wound of private trauma that has never healed
