is bybit safe

Bybit uses cold storage and multi-signature technology and is regulated by multiple countries. However, the hacker incident in 2025 exposed vulnerabilities, and users should enable 2FA and other measures to protect the security of funds.

Mar 24, 2025 at 02:53 pm

In the field of cryptocurrency trading, security has always been the core issue that investors are most concerned about. As a world-renowned cryptocurrency trading platform, Bybit has attracted much attention. Especially on the evening of February 21, 2025, more than 400,000 ETH and stETH with total assets worth over US$1.5 billion were transferred to unknown addresses, which even pushed Bybit's security issues to the forefront. So, is Bybit safe? Let's analyze in depth.

Bybit Platform Background

Founded in 2018 and headquartered in Dubai, UAE, Bybit is the top three cryptocurrency exchanges in the world in terms of trading volume. Its founder Ben Zhou has served as a headquarters executive at the forex brokerage firm XM. In its development history, Bybit has achieved remarkable results. In 2019, it handled 10% of the world's Bitcoin trading volume, and in 2024, the trading volume firmly ranked among the top in derivatives exchanges, second only to Binance.

Exploration of safety measures

Technical level

Cold storage application : Bybit uses cold storage to protect most user funds, save private keys offline, and reduce the risk of being stolen by hackers. This is a common security method used by top exchanges in the industry.

Multi-signature technology : transactions require multiple private key signatures to confirm, increasing the difficulty of hackers to control funds and improving fund security.

Real-time monitoring and emergency response : The platform has a real-time monitoring system that can promptly detect abnormal transactions and potential security threats. In 2024, upgrade safety measures and introduce an all-weather automatic emergency response system to quickly respond to safety incidents.

User security

Account security settings : Supports two-step verification (2FA). When users log in or make important transactions, in addition to passwords, they also need to pass secondary verification such as mobile phone verification code to increase account access security.

High-value transaction protection : implement additional verification and inspection of high-value transactions to prevent unauthorized large-scale transactions and protect the safety of user assets.

One-click account freezing : Users can immediately freeze the account when they discover account risks, prevent further losses of funds and control account security.

Regulatory situation

Bybit is actively seeking global compliance operations and is regulated by multiple authoritative organizations. In Dubai, it is regulated by the Virtual Assets Regulatory Authority (VARA) to ensure its compliance with digital trading platforms in Dubai; in Europe, it is regulated by the Cyprus Securities and Exchange Commission (CySEC) to protect the rights and interests of European traders, ensure the platform is transparent and comply with EU financial laws; in Kazakhstan, it is regulated by the Astana Financial Services Authority (AFSA) to ensure its compliance with financial services laws and operating standards locally. However, due to the nature of the service, Bybit is restricted in countries such as the United States, the United Kingdom, and Canada.

Reflections on security incidents

The 2025 hacking incident exposed Bybit's vulnerabilities in smart contract logic and signature interface. Although the platform stated that other cold wallets under its jurisdiction were safe, customer funds were not affected, and had strong reserves and 1:1 support, and also took measures such as raising bridge loans to protect user funds, this incident still sounded the alarm for the platform and users.

Users' security suggestions

Enable 2FA : Activate two-step verification to add additional protection to the account.

Set up a withdrawal whitelist : Only pre-approved addresses are allowed to receive funds, reducing the risk of funds being stolen.

Regularly check account activities : pay attention to account transaction records, turn on transaction reminders, and discover abnormalities in a timely manner.

Use cold wallets for large amounts of funds : large amounts of cryptocurrencies are stored in cold wallets, rather than staying on exchanges for a long time.

Overall, Bybit has many measures in security technology and user protection, and is also regulated by multiple authoritative institutions, but hacking incidents show that security risks in the cryptocurrency trading field always exist. When users use Bybit or other cryptocurrency trading platforms, they should fully understand the platform's security measures and take good care of their own funds.

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