Bybit Hacked, $1.5 Billion Losses Prompt Market Sell-off
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Hack Incident: Bybit exchange was hacked, resulting in losses of $1.4 to $1.5 billion from Ethereum wallets, with the market losing $325 billion since February 21, highlighting the cryptocurrency market's vulnerability.
- User Loss Assurance: CEO Ben Zhou pledged to cover all user losses to mitigate the impact of the incident, aiming to restore user confidence and prevent a repeat of the FTX collapse.
- Severe Market Reaction: The incident triggered a widespread sell-off in cryptocurrencies, with Bitcoin dropping below $90,000 and Ethereum being hit hardest, severely undermining investor confidence.
- Future Regulatory Trends: This hack may lead to increased scrutiny on exchange security protocols and potential regulatory tightening, reflecting the ongoing cybersecurity threats faced by the crypto industry.
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.
