The world of cryptocurrency trading continues to evolve, and with it, the importance of platform security has never been greater. For investors in Taiwan and beyond, choosing a reliable and secure exchange is crucial—especially as regulatory frameworks like the Financial Supervisory Commission’s "Anti-Money Laundering Registration Rules for Virtual Asset Service Providers" come into effect. One name that frequently surfaces in discussions about top-tier platforms is Bybit, a global leader in derivatives trading. But after a major security breach in early 2025, many are asking: Is Bybit safe?
This comprehensive guide dives deep into Bybit’s security infrastructure, unpacks the details of the 2025 hack, and offers practical advice to help you protect your digital assets—no matter where you trade.
What Is Bybit?
Bybit is a globally recognized cryptocurrency exchange founded in 2018 by Ben Zhou. Headquartered in Dubai, United Arab Emirates, the platform has rapidly grown into one of the most influential players in the crypto space. Known for its robust technology and diverse product offerings, Bybit supports millions of users across more than 160 regions.
As of March 2025, Bybit serves over 40 million users and maintains a daily trading volume averaging $25 billion. According to CoinMarketCap rankings, it holds the second position in spot trading volume and ranks third in derivatives trading—just behind Binance and OKX.
Key Features That Set Bybit Apart
- Diverse Trading Options: From spot trading to perpetual and futures contracts, Bybit caters to both novice and experienced traders.
- High Leverage: Offers up to 125x leverage on certain derivative products.
- Competitive Fees: Low transaction costs combined with deep market liquidity make high-frequency trading efficient.
- Yield-Generating Tools: Features like “Bybit Savings” and “Launchpool” allow users to earn passive income from idle holdings.
These attributes have helped Bybit build a strong reputation—but even the most advanced platforms aren’t immune to risk.
Is Bybit Safe? A Deep Dive Into Security Measures
At its core, Bybit employs multiple layers of protection designed to safeguard user funds and data. Let's explore the key components of its security framework.
🔐 Core Security Technologies
Cold Wallet Storage
Over 95% of user funds are stored in offline cold wallets, isolated from internet exposure. This drastically reduces the risk of large-scale theft through remote attacks.
Multi-Signature (Multi-Sig) Wallets
Fund withdrawals require authorization from multiple parties—typically involving at least three internal team members and external partners. This ensures no single compromised account can trigger unauthorized transfers.
Two-Factor Authentication (2FA)
Users can secure their accounts using Google Authenticator, SMS, or email verification. This multi-layered approach enhances protection against unauthorized access.
Emergency Insurance Fund
Similar to Binance’s SAFU fund, Bybit maintains an internal reserve to compensate users during extreme events. While the exact amount isn’t public, this fund played a critical role in recovering from the 2025 incident.
Advanced Encryption Standards
All user data and transaction records are protected using AES-256 encryption, one of the strongest available standards. Regular penetration testing helps identify and patch vulnerabilities before they can be exploited.
Anti-Phishing Code
A unique feature not offered by all exchanges, this allows users to set a custom code that appears in official communications—helping distinguish real emails from phishing attempts.
👉 Discover how top traders protect their portfolios with advanced security practices.
The 2025 Bybit Hack: What Happened?
On February 21, 2025, Bybit suffered its largest security breach to date—an attack that resulted in the loss of 401,000 ETH, valued at approximately $1.5 billion at the time. Investigations suggest the cybercriminal group Lazarus Group, linked to North Korea, was behind the operation.
How the Attack Unfolded
- Initial Breach: Hackers infiltrated the development environment of Safe{Wallet}, injecting malicious JavaScript code into legitimate software updates.
- Exploitation Phase: On February 19, a rogue smart contract was deployed. Two days later, Bybit’s signing officials were tricked into authorizing what appeared to be a routine transaction—unwittingly releasing funds from cold storage.
- Fund Dispersal: The stolen ETH was quickly fragmented across thousands of addresses and laundered through decentralized exchanges (DEXs) and cross-chain bridges, complicating recovery efforts.
Despite the scale of the breach, Bybit’s response was swift and transparent.
Bybit’s Crisis Response
- Immediate Freeze: Withdrawals were suspended within minutes of detection.
- Collaborative Recovery: Partnered with blockchain analytics firm Chainalysis to trace illicit flows; successfully recovered $42.8 million worth of assets.
- Full Compensation: Used internal reserves and secured emergency loans to restore a 100% collateral ratio, ensuring all users could withdraw their full balances.
- Security Overhaul: Upgraded multi-signature protocols, introduced third-party audits, and launched a 10% bug bounty program for white-hat hackers.
Ben Zhou, Bybit’s CEO, addressed users directly via livestream within 24 hours:
“Our reserves exceed $2 billion. Every dollar is accounted for. You can withdraw anytime.”
This decisive leadership helped stabilize confidence during a turbulent period—and demonstrated that resilience isn’t just about prevention, but also recovery.
Common Crypto Scams & How to Avoid Them
Even on secure platforms like Bybit, users remain targets for sophisticated scams. Here are five common threats—and how to defend yourself.
1. Phishing Websites & Fake Apps
Scammers clone official sites (e.g., bybit.co instead of bybit.com) to steal login credentials.
✅ Prevention: Always verify URLs. Bookmark https://www.bybit.com/ and download apps only from official app stores.
2. Impersonation & Social Engineering
Fraudsters pose as customer support on Telegram or WhatsApp, requesting private keys or 2FA codes.
✅ Prevention: Bybit will never ask for your seed phrase. Report suspicious accounts immediately.
3. Pump-and-Dump Schemes
Groups artificially inflate obscure token prices before dumping them on unsuspecting buyers.
✅ Prevention: Research projects thoroughly. Avoid chasing sudden price spikes without fundamentals.
4. Fake Investment Programs
Promises of guaranteed returns (“5% daily!”) lure victims into sending funds to scammer-controlled wallets.
✅ Prevention: If it sounds too good to be true—it is. Never share control of your funds.
5. Private Key Theft
Malware or fake wallet apps can extract your recovery phrases.
✅ Prevention: Store seed phrases offline (paper or hardware wallets). Use devices free of suspicious software.
👉 Learn how professionals detect and avoid crypto scams before they happen.
What To Do If You’ve Been Scammed
If you suspect fraud—whether due to phishing or account takeover—act quickly:
- Regain Access: Change passwords and enable 2FA immediately if still possible.
- Freeze Your Account: Contact Bybit support via the official website or app.
- Report & Document: Submit a ticket through the Help Center with screenshots, transaction IDs, and chat logs.
- File a Police Report: Provide blockchain evidence using tools like Etherscan or BscScan.
- Stay Alert: Monitor communications and verify all future interactions.
While fund recovery is often difficult, prompt action increases your chances of limiting damage. Remember: most scams exploit human error—not platform flaws.
Frequently Asked Questions (FAQ)
Is Bybit safe to use?
Yes, Bybit implements industry-standard security measures including cold storage, multi-sig wallets, AES-256 encryption, and anti-phishing tools. While no system is completely immune to attacks, Bybit’s rapid response to the 2025 hack demonstrates strong operational resilience.
Does Bybit compensate users if funds are stolen?
In the case of the 2025 breach, Bybit fully compensated affected users using internal reserves and emergency financing. While there’s no formal insurance policy disclosed, historical actions show a commitment to user protection.
How can I make my Bybit account more secure?
Enable two-factor authentication (preferably Google Authenticator), set up an anti-phishing code, avoid public Wi-Fi for logins, and never share your private keys or recovery phrase.
What happens if my Bybit account gets hacked?
If detected early, you may regain control by resetting credentials. Contact support immediately to freeze withdrawals. Note that once funds are transferred out via authorized transactions (e.g., due to stolen 2FA), recovery depends on blockchain tracing and law enforcement cooperation.
How reliable is Bybit’s encryption?
Bybit uses AES-256 encryption—the same standard trusted by governments and financial institutions—to protect user data and transaction records. Regular audits help maintain system integrity.
👉 Explore advanced security strategies used by institutional investors today.
Bybit remains one of the most technologically advanced exchanges in the crypto ecosystem. While the 2025 hack was a sobering reminder of systemic risks, the platform’s transparent recovery efforts reinforce its position as a responsible market participant. For users, staying informed and proactive is the best defense against evolving threats in digital finance.