Bybit Hack: A Geopolitical Issue

The recent Bybit hack is considered a geopolitical issue rather than a fundamental flaw in cryptocurrency security, according to Crucible Capital’s Meltem Demirors.

Speaking on CNBC’s “Power Lunch,” Demirors and TrustedSec CEO David Kennedy linked the attack to North Korea’s Lazarus Group, known for targeting digital assets.

Kennedy noted that the hack mirrored past cyberattacks that utilized social engineering tactics to compromise developer accounts.
> “They did a lot of research and a lot of understanding around the exchanges and the infrastructure, as well as how these types of, you know, public and private key cryptography components work,” Kennedy said.

The attack specifically targeted Bybit’s Safe Wallet infrastructure, moving funds through a network of 50,000 addresses to obscure transactions.

Demirors emphasized that Bitcoin’s cold storage security remains intact, but private key risks are an ongoing concern in cryptocurrency. However, she highlighted increasing industry collaboration in response to hacks.

Demirors pointed out that an attack like this could have severely impacted Bybit in 2022 or 2023, but enhanced cooperation among security providers, exchanges, and governments has improved asset tracking and freezing efforts.

Both experts agreed the attack underscores the need for stronger security but does not undermine Bitcoin’s (BTC) investment case.
“This is a North Korea issue. It will continue to be a North Korea issue,” Demirors stated. “The Trump administration is smart on crypto. They view this not as a crypto issue.”

Kennedy added that while cryptocurrency systems are designed to be secure, human vulnerabilities remain the biggest risk.