Overview

• The FBI confirmed North Korea's Lazarus Group orchestrated the largest crypto theft in history, stealing $1.4 billion from Bybit on February 21, 2025.
• Hackers exploited a Safe Wallet developer's compromised machine to inject malicious JavaScript targeting Bybit's Ethereum cold wallet during a routine transfer.
• Bybit has launched a $140 million bounty program to trace and recover stolen assets, with $42 million frozen so far and ongoing laundering efforts complicating recovery.
• The Lazarus Group funneled stolen funds through decentralized exchanges, with approximately 30% laundered within five days, raising concerns about crypto security.
• Bybit has restored its reserves to a 1:1 ratio, ensuring user funds remain secure, and called for collective industry action to combat cyber threats.