Bybit

Bybit Fintech Limited, branded Bybit, is a cryptocurrency exchange based in Dubai, the United Arab Emirates. Founded in 2018 by Ben Zhou, it is one of the largest cryptocurrency exchanges in the world.

In February 2025, the exchange was hacked resulting in the loss of $1.5 billion in assets in the largest cryptocurrency theft on record.

History

Bybit was founded in 2018 by Ben Zhou, an entrepreneur from Singapore, who currently serves as CEO.

In 2022, Bybit relocated its headquarters from Singapore to Dubai, United Arab Emirates.

In November 2023, the FTX bankruptcy estate sued Bybit for nearly $1 billion. It alleged that Bybit's investment arm Mirana prioritized withdrawals from FTX in November 2022 amid solvency concerns and withdrew nearly $500 million before withdrawals stopped. The suit claimed that Bybit used FTX assets to expedite withdrawals, blocked FTX from reclaiming $125 million, and devalued tokens worth tens of millions through BitDAO. FTX also contended that a token swap with Alameda Research in October 2021 was reversed in May 2023 when BitDAO restructured tokens, limiting redemption rights. In October 2024, Bybit settled its FTX case by paying $228 million.

2025 hack

On February 21, 2025, Bybit announced on X that it had been hacked. According to Bybit, about 400,000 Ethereum was stolen, which had an approximate notional value of $1.4 billion, making it the largest cryptocurrency exchange hack to date. The firm reported that it was able to replenish its reserves within 72 hours by securing 447,000 ether tokens in emergency funding. The liquidity was provided by firms including Galaxy Digital, FalconX and Wintermute.

The attacker exploited vulnerabilities in Bybit's multi-signature wallet system, facilitated by compromised infrastructure at Safe, a third-party provider.

Blockchain analytics firms Arkham Intelligence and Elliptic claimed they were able to trace the hack to Lazarus Group, an advanced persistent threat tied to North Korea. The US Federal Bureau of Investigation also attributed the hack to North Korea, blaming "TraderTraitor actors".

Sponsorships

In August 2021, Bybit sponsored Ukrainian esports organization Natus Vincere (NAVI) in a three-year deal, becoming its official crypto platform partner with its logo on jerseys. Soon after, Bybit signed a similar three-year agreement with Danish esports club Astralis featuring its branding on uniforms.

In November 2021, Bybit became the main sponsor of the Argentina national football team through a two-year deal with the Argentine Football Association (AFA), with its logo on training apparel ahead of the 2022 FIFA World Cup.

In early 2022, Bybit entered Formula 1 as a sponsor of the Oracle Red Bull Racing team with a multi-year partnership, reportedly worth $150 million over three years. The sponsorship ran through the 2022 to 2023 seasons and concluded at the end of 2024 by mutual agreement.

Legal status

Canada

In 2021, the Ontario Securities Commission (OSC) targeted unregistered crypto exchanges. Bybit was found offering trading services to Ontario residents without registration. After cooperating with the OSC, Bybit reached a settlement in June 2022, paying about CAD 2.5 million in disgorged revenue and investigative costs, and agreeing to halt new account openings and product offerings in Ontario.

India

Bybit was fined 9.27 crore rupees (approximately $1.06 million) by India's Financial Intelligence Unit (FIU). The penalty was imposed for violations of the Prevention of Money Laundering Act (PMLA), according to official documents released on January 31, 2023. In February 2025, the exchange paid the fine and secured registration with the Indian FIU.

Japan

Bybit has faced regulatory action from the Financial Services Agency (FSA) for operating without proper registration. In May 2021, the FSA warned Bybit for allowing Japanese residents to trade despite the platform not being licensed in Japan and instructed it to comply with local regulations. In April 2023, the FSA issued another public warning regarding unregistered crypto trading activities targeting Japanese users. In February 2025, the FSA blocked Bybit from the App Store and Google Play in Japan.

United Kingdom

In March 2021, Bybit ceased serving users in the United Kingdom (UK) in response to the Financial Conduct Authority's (FCA) ban on retail cryptocurrency derivatives, which took effect on January 6, 2021.

United States

, Bybit was blocked from operating in the United States.

References

{{DEFAULTSORT:Bybit
2018 establishments in the United Arab Emirates
Cryptocurrency exchanges
Companies based in Dubai
Cryptocurrency theft
Hacking in the 2020s
Cyberattacks
2025 in economic history
Cyberwarfare in North Korea