Tether CEO Confirms Quick Action Against Bybit Hack

Tether CEO Paolo Ardoino confirmed freezing 181,000 USDT linked to the Bybit hack, showing quick action against illicit crypto transactions.
Analysts suggest the Bybit hack, which exploited a cold-to-warm wallet transfer, may be linked to the Lazarus Group.

On February 21, 2025, a significant hack targeting the Bybit trading platform stunned the crypto community once more. About 401,000 Ethereum (ETH)—equivalent to $1.5 billion—were pilfered in this incident. Bybit CEO Ben Zhou quickly assured that client assets were safe and withdrawals were still running as usual.

Tether’s Quick Action in Freezing Funds

Tether CEO Paolo Ardoino confirmed a few days after the incident that 181,000 USDT allegedly connected to the Bybit breach had been frozen by his company. This step reveals Tether’s fast detection and response capability for suspicious transactions on their network.

> JUST IN: TETHER CEO PAOLO ARDOINO CONFIRMS THEY FROZE 181K $USDT CONNECTED TO THE BYBIT HACK
> “MIGHT NOT BE MUCH BUT IT’S HONEST WORK”
> Source: @paoloardoino
>
> — Mario Nawfal’s Roundtable (@RoundtableSpace) February 22, 2025

However, this brings up an interesting question: is this action sufficient to lessen the effects of a hack of this scale? With billions of dollars taken overall, freezing 181,000 USDT seems minor. Still, this action is a sign that major cryptocurrency companies are progressively enhancing their security protocols and reactions to cybercrime.

Hacking Mode: Exploiting Internal Transfer Loopholes

According to analysis by Arkham Intelligence, this attack occurred during a routine transfer from a cold wallet to a warm wallet. The hackers used this opening to divert funds to an unknown address. This kind of situation is not the first in the crypto space.

Many analysts believe this action is the work of the Lazarus Group, a hacker group allegedly connected to North Korea. They are known for their advanced techniques in launching cyberattacks, particularly in the financial and crypto sectors.

Bybit Remains Optimistic, Claims User Funds Are Safe

Ben Zhou ensured that client funds were not impacted even though this event set the crypto community on alert. Bybit also emphasized that they are ready to absorb any losses without affecting users, as they possess assets of over $20 billion.

However, this raises a crucial issue: how secure are the security procedures at other cryptocurrency exchanges if a hack like this could occur on a network as large as Bybit? Is there a long-term fix to prevent similar occurrences?

Minimizing Risks: How Ethena Labs Protects USDe Assets

Meanwhile, CNF reports that Ethena Labs stores their USDe assets in off-exchange storage solutions like Copper Clearloop, minimizing the risk of direct exposure to trading platforms like Bybit. This strategy emphasizes the importance of diversification and using enhanced storage technologies, which may become the new standard in the crypto sector as cybersecurity concerns grow.

This incident reiterates that hackers still find easy targets in the cryptocurrency space. However, there is a positive aspect: corporations will act faster as they recognize the necessity for improved security.