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Weekly Recap: Bybit Suffers Largest Crypto Hack in History, Losing $1.4 Billion

Embark on your crypto adventure in Week 3, Feb 2025 (Feb 17 - Feb 23)!

Author

Alpha Quest
February 24, 2025

Welcome to the latest edition of ChainPlay's Newsletter, where we dive into the week's most exciting and innovative crypto news.

ChainPlay.gg provides the latest updates, trends, and insights in the crypto market. Stay informed about key developments, investments, and growth across the industry.

Last Week’s VC Biggest Deals

Date

Project

Catagory

Raised

Investor

18 Feb

Blockaid

Security

$ 50.00M

Series B

Ribbit Capital

Variant

GV Google Ventures

Cyberstarts

18 Feb

Cygnus Finance

Layer 2

Zk - proof

Real Yield

$ 20.00M

Pre-Seed

OKX Ventures

Mirana Ventures

eGirl Capital

UpHonest Capital

Optimism

Manifold

G-20 Group

17 Feb

Kinto

Arbitrum Orbit

Layer 2 (L2)

$ 20.00M

Undisclosed

Brevan Howard Digital

18 Feb

Altius

Developer Tools

$ 11.00M

Pre-Seed

Pantera Capital

Digital Currency Group (DCG)

Amber Group

Founders Fund

Archetype Ventures

No Limit Holdings

Reforge

The Most Shocking Stories of the Week

Chinese Ethereum Investor Burns $6.8M to Warn of Mind Control

Chinese programmer Hu Lezhi spent 2,553 ETH ($6.8M) on burn addresses and donations, claiming Chinese corporations use mind-control technology to enslave people.

Between Feb. 10-17, Lezhi made multiple high-value transfers, including 500 ETH to a null address, flagged by Arkham. His on-chain messages accused Kuande Investment’s CEOs of using “brain-computer weapons” to manipulate employees.

Describing himself as a longtime victim, Lezhi claimed the technology turns people into “slaves to the digital machine.” His transactions aimed to expose what he called a new form of crime.

Bybit Suffers Largest Crypto Hack in History, Losing $1.4 Billion

On February 21, crypto exchange Bybit was hacked for $1.4 billion, making it the largest exploit in industry history. The attack, allegedly linked to North Korea’s Lazarus Group, drained Bybit’s Ethereum cold wallet, accounting for over 60% of all crypto thefts in 2024, according to Cyvers.

Bybit’s assets dropped from $16.9 billion to $11.2 billion, with withdrawals exceeding $5.5 billion, per DeFiLlama. The breach briefly pushed Ethereum’s price down 7% to $2,629 before rebounding to $2,765, per CoinGecko.

Bybit’s Response

Despite the massive loss, CEO Ben Zhou assured users that the exchange fully replaced the stolen $1.4 billion in Ether. Blockchain analytics firm Lookonchain estimated that Bybit acquired 446,870 ETH (worth about $1.23 billion) through loans, whale deposits, and purchases, covering nearly 88% of the stolen amount. The exchange, now holding $10.9 billion in assets, continues investigating the breach and strengthening its security.

Major Crypto Hacks in History

Bybit’s hack adds to a series of high-profile breaches, including:

  • Ronin Network (2022): $600M stolen from Axie Infinity’s Ethereum sidechain, attributed to Lazarus Group.

  • Poly Network (2021): $600M taken in a cross-chain exploit, later mostly returned.

  • BNB Chain Bridge (2022): $568M stolen due to a vulnerability in the BSC Token Hub.

  • Coincheck (2018): $534M in NEM tokens drained from a hot wallet.

  • FTX Collapse (2022): $477M vanished amid the exchange’s downfall, with the culprit still unidentified.

Bybit’s swift response in replacing funds and ensuring transparency is crucial in restoring user trust. However, this massive breach underscores the growing risks in crypto security, reinforcing the need for stronger safeguards in the industry.

OpenSea Teases SEA Token Airdrop, Pauses XP Rewards After Backlash

The OpenSea Foundation announced on Feb. 13 that its upcoming token airdrop will be named SEA, though no launch date was provided. The token will be available in the U.S., and eligibility will factor in both historical and recent user activity, addressing community concerns.

Meanwhile, OpenSea paused its XP reward system following criticism from NFT collectors, who argued it encouraged wash trading and overlooked artists. In response, the company introduced XP shipments on Feb. 14, shifting its rewards approach. CEO Devin Finzer emphasized OpenSea’s commitment to long-term support for the NFT space.

Blockchain Gaming Activity Surges 386% in January: DappRadar

Blockchain gaming saw a massive surge in activity last month, with over 7 million daily unique active wallets (UAW) recorded—marking a 386% year-on-year increase, according to DappRadar’s Feb. 13 report. Analysts attribute the growth to industry maturation, improved infrastructure, and new game releases.

Despite the rise in player engagement, blockchain gaming investment dropped 38% year-over-year to $1.8 billion in 2024. Experts suggest economic trends and investor caution post-U.S. presidential changes may have contributed to the slowdown.

Meanwhile, DeFi maintained its lead over gaming in overall DApp activity, while AI-powered gaming applications gained traction, reflecting broader industry trends.

Last Week's Partnerships in the GameFi Space 

Partnerships in the GameFi space highlight ongoing efforts to integrate AI, unlocking new potential for the blockchain gaming industry. Here are last week’s most notable collaborations:

  • @LFG_GTFO partners with @avax 

  • TGC raises $10 million and announces a new partnership with BytePlus 

  • @SankoGameCorp receives support from the @arbitrum Foundation 

  • @TalusNetwork and @SuiNetwork reveal a partnership to power AI agents 

  • Com2uS strengthens its presence in Web3 by partnering with NEXUS @cross_protocol

Follow us on Twitter to stay up to date with the latest news and announcements!

See you same place same time next week!

❤❤❤

ChainPlay team