Bybit's CEO Ben Zhou Navigate $1.5 Billion Hack with Swift Leadership

Ben Zhou led Bybit through a $1.5 billion hack in 2025, demonstrating effective crisis management and leadership. Discover his response and its implications.

Key Takeaways

Ben Zhou acted decisively within 30 minutes of the $1.5 billion hack, providing timely updates to users.
His transparent communication through frequent X posts and a two-hour livestream reassured stakeholders.
Bybit processed over 350,000 withdrawal requests in just 12 hours, ensuring ongoing operations.
The exchange secured emergency funding and maintained a 1:1 asset reserve, safeguarding user funds.

Bybit's CEO Ben Zhou Navigate $1.5 Billion Hack with Swift Leadership

In times of crisis, leaders are often truly tested, revealing their true mettle under pressure. This notion rings especially true for Ben Zhou, the co-founder and CEO of Bybit, who encountered his greatest challenge yet with a staggering $1.5 billion hack on February 21, 2025—marking the largest security breach in the history of cryptocurrency.

Zhou was made aware of the breach at 10 PM local time. Instead of retreating after a long day, he confronted the situation head-on, conducting back-to-back meetings, responding to stakeholders, and collaborating with law enforcement to manage the unfolding crisis. He displayed remarkable tenacity, navigating this turbulent period with resilience rather than succumbing to panic.

Zhou’s Rapid Response to the Bybit Hack

Within half an hour of learning about the incident, Zhou took the reins and reached out to the community via X. Shortly thereafter, he hosted a comprehensive two-hour livestream to provide real-time updates and explanations to concerned users.

Under Zhou’s stewardship, Bybit demonstrated remarkable professionalism and resilience following the security breach. His transparent approach helped mitigate panic among users, reassuring them that all client assets were being accounted for, as he communicated via an X post that all assets are backed 1:1.

Throughout February 21 and 22, Zhou consistently updated stakeholders on Bybit's emergency responses, promoting a sense of calm among depositors. In a message on X, he assured them that, “All Bybit functions and products remain operational, and our entire team is awake to answer questions and concerns—rest assured, we are here with you.”

Insights for Beginners:

Zhou's leadership showcases how effective communication can stabilize a company's reputation, especially during crises. For crypto companies, maintaining user trust is essential.
The immediate reaction of a company's CEO to a crisis can significantly influence how stakeholders and customers respond, setting the tone for the company's future.

Zhou assures customers about the safety of their funds

To accurately assess Zhou’s efficiency amidst the crisis, it’s crucial to recognize the expectations of a CEO in such situations and whether he met them effectively.

Did You Know? Following the breach, Bybit successfully acquired around 446,870 Ether (ETH), worth approximately $1.23 billion, through loans and large investor deposits, recouping nearly 88% of the $1.4 billion lost as reported by Lookonchain.

Expectations for a CEO During a Crisis

When a cryptocurrency exchange faces a cyberattack or emergency, the CEO is expected to act swiftly to stabilize the situation. This includes having preset plans and resources to address sudden disruptions. They should mobilize their incident response team and communicate effectively with stakeholders.

Once the immediate response is established, a CEO must engage with cybersecurity experts and law enforcement as necessary. Maintaining transparency through regular updates with customers, investors, and employees is vital to uphold trust. Additionally, they need to assess security protocols and corporate policies to avoid similar future incidents.

Did You Know? According to crypto investigator ZachXBT, the Bybit exploit has been attributed to North Korea's Lazarus Group, earning him a 50,000-ARKM token bounty for his discovery.

Zhou’s Crisis Management Skills Post-Hack

The hack at Bybit has placed Zhou's leadership under scrutiny. Beyond the financial loss, the incident spurred conversations about the effectiveness of Bybit’s security measures and the responsiveness of its management.

Here's a closer examination of Zhou’s response, from decision-making practices to communication strategies and their impacts on both the company’s reputation and the wider crypto market:

Despite the crisis, Zhou ensured Bybit’s operations remained unaffected. The exchange continued processing withdrawals normally—contingent upon network congestion—with over 350,000 requests handled within just 12 hours. Customers maintained access to their relationship managers, reinforcing the exchange’s commitment to its users.

Bybit processed all withdrawals within 12 hours of the hack

Zhou's extensive network proved beneficial as the crypto industry rallied around Bybit, demonstrating a collaborative spirit. Rival exchanges took action to blacklist the misappropriated wallet addresses, curbing the hackers' ability to transfer the stolen assets. Furthermore, companies like Galaxy Digital and Wintermute provided emergency funding, with Bybit securing 40,000 ETH from Bitget—swiftly repaid within three days.

Did You Know? On February 25, 2025, Zhou rallied user support through a post on X, calling for a “war against Lazarus,” the North Korea-linked group responsible for the theft.

To promote transparency, the cybersecurity firm Hacken conducted a proof-of-reserves audit, confirming that Bybit had restored its reserves. This audit verified that all essential assets, including Bitcoin, ETH, Solana, and Tether’s USDt, were backed by over 100% in collateral.

Despite facing a significant hack, Bybit demonstrated its commitment to maintaining a 1:1 asset reserve, reassuring customers of the safety of their funds. Zhou emphasized the exchange’s capability to absorb the loss and remain financially stable, thus reiterating their robust financial foundation.

To tackle the aftermath of the hack, Zhou collaborated closely with regulatory and law enforcement bodies, showcasing how crypto firms can partner effectively with authorities in critical situations—a collaborative example for future incidents.

Did You Know? Between 2017 and 2023, hackers associated with North Korea reportedly stole over $3 billion in cryptocurrency from various exchanges.

Zhou kept users informed about stolen funds through consistent updates. He revealed the methods the hackers used to exploit Bybit's systems, further enhancing transparency.

Hackers managed to change the smart contract logic of Bybit's ETH cold wallet

On March 4, Zhou provided further updates, indicating that out of the stolen $1.5 billion, $280 million was untraceable while $1.07 billion remained accessible to investigators.

Zhou released regular updates about the stolen funds

Additionally, Zhou initiated a global bounty program offering up to 10% rewards for information leading to the recovery of the stolen assets.

Who is Ben Zhou?

Born in Hangzhou, China, and later moving to New Zealand, Ben Zhou established himself as a notable figure in the cryptocurrency world. He completed his studies in Economics at Earlham College in the US and worked in finance before discovering blockchain technology in 2016. Inspired by this new frontier, Zhou created Bybit in 2018, which grew to become one of the world’s largest cryptocurrency platforms with over 37 million users by July 2024.

Zhou's commitment to crypto education is evident through the Bybit Learn Academy, where he educates users on trading and risk management strategies. His dedication to corporate social responsibility is seen in his partnerships, such as with UNICEF, where Bybit made significant donations to support education initiatives in East Asia and the Pacific.

Conclusion: From Crisis to Resilience

Zhou’s effective leadership, clear communication, and prompt action helped Bybit regain user trust and reinforce security measures. His experience in the crypto industry and adept decision-making stabilized the platform during this tumultuous period, emphasizing the importance of accountability in crisis management.

SEO-Friendly Title: Ben Zhou’s Leadership During Bybit's Historic $1.5 Billion Hack: A Crisis Management Case Study