Bybit market share tanks 75% following $1.5B security breach

Bybit, a major crypto exchange, has experienced a sharp decline in market share following the $1.5 billion security breach it suffered in February.

Major cryptocurrency exchange Bybit has experienced a sharp decline in market share following the $1.5 billion security breach it suffered in February, new data shows.

Following the heist, which unfolded on February 21, Bybit’s market share plummeted to as low as 5% on March 2, down from nearly 20% previously, according to figures from crypto market data provider Kaiko. However, the exchange’s numbers have since slightly improved to 9.04% as of March 9.

The exchange’s market share had been hovering around 12% to 14% in the weeks leading up to the incident.

Following the hack, the biggest beneficiary appeared to be Binance, as its market dominance surged to 62% immediately after the incident. Nonetheless, that figure has since decreased to around 50%.

Earlier this year, hackers exploited vulnerabilities in Bybit’s cold wallet system, leading to the theft of $1.5 billion in cryptocurrency. The heist, the largest exchange hack to date, occurred as a result of vulnerabilities in the platform’s security framework, according to Kaiko.

After the incident, authorities and blockchain analysts began tracking the stolen assets, which were reportedly part of a broader cybercrime spree carried out by North Korean state-backed hackers, also known as the Lazarus Group.

The hackers are known for their advanced money laundering tactics, making it difficult to recover the stolen cryptocurrency. However, blockchain analytical firm Elliptic has stated that at least $300 million of the stolen funds have already been laundered.output: