Crypto Market Rocked by $1.4B Bybit Hack as Jupiter DEX Shines: Weekly Roundup

This week, the cryptocurrency world witnessed its largest-ever security breach, alongside a stark demonstration of decentralized resilience, as centralized exchange Bybit suffered a devastating hack while Jupiter, a Solana-based decentralized exchange (DEX), emerged unscathed and thriving.

Bybit Breach: A Record-Breaking Heist

On Friday, February 21, Bybit, one of the top centralized cryptocurrency exchanges, confirmed a staggering $1.4 billion exploit—the biggest hack in crypto history. The attack targeted an Ethereum (ETH) cold wallet, with hackers employing a sophisticated “masked UI” tactic to deceive signers into approving a malicious smart contract. Over 401,000 ETH, valued at approximately $1.4 billion, was siphoned to an unidentified address, surpassing the previous record set by the $600 million Ronin Network hack in 2022.

Bybit CEO Ben Zhou took to social media to address the crisis, assuring users that the exchange remains solvent and client funds are fully backed 1:1. “Bybit is solvent even if this hack loss is not recovered,” Zhou stated, adding that the firm secured a bridge loan to manage a 100-fold surge in withdrawal requests. Blockchain analytics firm Elliptic and investigator ZachXBT have pointed to North Korea’s Lazarus Group as a likely suspect, citing similarities to prior high-profile breaches like the Phemex hack in January 2025.

The fallout was immediate: Ethereum prices dropped 4% to $2,680 before stabilizing, while Bitcoin fell 1.5%, dragging the total crypto market cap down 0.8% to $3.2 trillion. Bybit has reported the incident to authorities and is collaborating with on-chain analysts to trace the stolen funds, some of which have already been swapped on DEXs.

 Market Ripples and Other Developments

The Bybit hack overshadowed other crypto news this week. Earlier, Coinbase celebrated a regulatory victory as the U.S. Securities and Exchange Commission appeared poised to drop a case against the exchange. However, Friday’s breach quickly shifted focus, reigniting debates over centralized exchange vulnerabilities. Analysts note a troubling trend, with February 2025 already marked by heightened hacking activity following incidents at WazirX and Radiant Capital late last year.

Jupiter DEX: A Beacon of Stability

Amid the chaos, Jupiter, a decentralized exchange on the Solana blockchain, stood out as a beacon of stability. Unaffected by the centralized carnage, Jupiter saw a surge in trading volume as spooked traders sought alternatives to CEXs. Unlike Bybit, Jupiter’s decentralized architecture—lacking a single point of failure like a cold wallet—proved its mettle, reinforcing the adage: “Not your keys, not your crypto.”

Jupiter’s edge lies in its speed, powered by Solana’s sub-second transaction finality, low fees, and user-controlled funds. This week, it reportedly outpaced several CEXs in daily trading volume, capitalizing on Bybit’s woes. Traders flocked to Jupiter to swap assets, including some of the stolen ETH, with no interruptions or trust issues. Industry observers see this as a pivotal moment, potentially accelerating the shift toward decentralized finance (DeFi).

 What’s Next?

The Bybit hack has sent shockwaves through the crypto ecosystem, raising fresh questions about the security of centralized platforms. While Bybit scrambles to restore confidence, Jupiter’s resilience underscores DeFi’s growing appeal. As investigations continue and market volatility persists, this week may mark a turning point in the ongoing battle between centralized and decentralized finance. For now, the crypto community watches closely, wallets in hand.