First ByBit $1.5B Hack and Now Infini $49.5M Hack: What Going On with Crypto

Last week we go through sudden crash caused by ByBit exchange security breach, Where a group of hackers (The Lazarus Group) stolen almost $1.5B worth of Ethereum from ByBit’s cold wallet. Today on 24Th Feb, 2024 we are witnessing a significant security breach at Infini (A $2.5B worth DeFi Platform). News coming that hackers use advance techniques, including flash loan attacks,  Zero day exploits, Oracle manipulation to Infini Smart Contracts and resulting in losses exceeding $49.5M.

ByBit Hack Feb 2025 Overview:

ByBit is the 3rd largest centralized crypto exchange in the world and the victim of largest crypto hack so far. On February 2025, A social engineering hacking technique is used to steal ~$1.5 Billion from exchange cold wallet which lead whole crypto market to a sudden crash. Investigators are linking this attach to a prominent North Korean Hackers group “The Lazarus Group”. They used to UI social engineering technique to modify the smart contract logic of exchange’s multi signature wallet and this way they manage to get the ownership of wallet.

“Hackers sometimes create an entire website that looks exactly like a well known website such as exchanges, banks and desired relevant site to exploit. Then they send an e-mail containing a link that looks entirely like the official ones. Once you log in, you’re actually logging in on their website and giving away your credentials”.

Market Reaction On ByBit Hack:

North Korea’s Lazarus Group begins laundering the stolen $1.5B. According to blockchain intelligence firm Elliptic, the hackers have already moved $140 million in crypto, using decentralized exchanges and anonymous platforms to obscure their trail. Retailers and investors are panic selling aiming the same scenario could take place with bitcoin. On the other hack CEO of ByBit, Ben Zhou confirm in his tweet that ByBit closed the ETH Gap and new audit report will be published as soon as possible to show that Bybit again back 100% 1:1 on client assets through merkle tree.

Infini Hack Feb, 2025:

Infini a stable coin firm worth $2.5 billion facing a security breach today leading hackers to steal $49.5M. Whereas the Co-founder of Infini, reassured customers, “There is no problem with liquidity. Full compensation will be paid, and the funds are being traced.”

Yu Xian, founder of blockchain security firm SlowMist, also confirmed that his team was actively investigating the theft, describing the attacker as a very technical person.

Infini founder Christian tweeted: “A friend joked before that my journey has been too smooth, and I said I was always ready to face the first disaster. I didn’t expect that after bybit, the next incident would be myself. The personal private key was not leaked; it was a negligence during the transfer of permissions. Ultimately, it is my own responsibility, and this has sounded the alarm. Currently, there are no issues with liquidity, and we can make full compensation. We are investigating the funds.”

Conclusion:

Crypto Market is highly volatile market, treated as risky asset category. Where people are waiting for emerging bull market, we are getting this type of bad news. Usually the month of February in crypto market treated as the green and high return month. Besides of some great news the whole market is lagging behind.

Is this start of bear Market!