Bybit Hack by Lazarus Group Causes $1.5B Loss and $325B Market Cap Wipeout
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Hack Incident: On February 21, 2025, Bybit was hacked by North Korea's Lazarus Group, resulting in a staggering $325 billion wiped from the global crypto market cap, directly impacting investor confidence and market liquidity.
- Bitcoin and Ethereum Price Drops: The security breach led to significant declines in major cryptocurrencies like Bitcoin and Ethereum, with the market losing $100 billion in just one hour and $150 billion liquidated within 24 hours, reflecting heightened panic among investors.
- Liquidity Crisis Intensifies: As market dynamics shifted, the exploration by liquidity provider Citadel Securities resulted in increased price volatility for major cryptocurrencies, while assets like Solana faced immense pressure amid selling frenzies, indicating a growing atmosphere of uncertainty.
- Regulatory Policy Implications: This breach could prompt the industry to enhance cybersecurity measures, potentially influencing future regulatory policies, as historical comparisons show that similar hacks often precede shifts in investment strategies and market restructuring.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
