Bybit’s Market Share Plummets After $1.5 Billion Hack, Binance Gains Ground

Bybit, a leading cryptocurrency exchange, has faced a significant setback in its market position following a massive security breach that resulted in the theft of $1.5 billion worth of assets in February.

Market data from Kaiko indicates that Bybit’s share dropped sharply from nearly 20% on February 21, the day the hack occurred, to just 5% by March 2. As of March 9, the exchange has managed a slight recovery, reaching 9.04%.

In contrast, Binance capitalized on the turmoil, increasing its market share to 62% immediately after the breach. However, this figure has since decreased to around 50%.

The hack, which took place on February 21, involved a vulnerability in Bybit’s cold wallet system, leading to the largest exchange theft in history. Hackers managed to siphon off $1.5 billion in Ethereum, highlighting serious flaws in the exchange’s security infrastructure.

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Efforts to track down the stolen funds have intensified, with blockchain experts and authorities working to recover assets linked to the North Korean hacking group, Lazarus, notorious for its sophisticated laundering techniques.

Elliptic, a blockchain analytics firm, has revealed that approximately $300 million of the stolen funds have already been laundered, making recovery efforts even more challenging.

Alexander Stefanov