Bybit Breach Rumor Sparks Panic Despite Exchange Denial of Attack

Crypto traders woke up to shocking posts claiming a new Bybit breach had stolen user funds. In a quick response, the Bybit Breach Rumor was refuted officially by the platform, confirming that all assets are safe and the platform is working normally. The platform also reminded users to always verify news from official sources before reacting to online posts.

Source: Bybit_official

The confusion started when X posted that there was a security breach. The account does not carry any verification badge and has just 400 followers, but the post still got shared nearly 400 times, and that instigated panic in the market.

Why the Rumor Spread Fast

The rumor was connected to a real event from February 2025, when Bybit faced the biggest crypto hack ever . In that attack, more than $1.4 billion worth of Ethereum was stolen. Investigators later linked the hack to North Korea’s Lazarus Group,a cybercrime team also known for targeting other exchanges like Phemex and BingX.

Because of that history, many traders trusted the new posts, even though there was no real proof. Ethereum’s price dipped to $4,144 (around 7%) as a result of its consequences.

False Alarm, Real Losses: Billions Liquidated in a Day

The Bybit breach rumor shook traders even without being true. In the past 24 hours, more than 396,969 traders were liquidated, with total liquidations reaching $1.69 billion. The largest single liquidation order happened on OKX’s BTC-USDT-SWAP, worth $12.74 million.

These type of fake rumors have shaken crypto markets many times before. In 2022, panic spread when posts claimed Binance was going bankrupt, leading to billions in withdrawals before being denied. The same year, fake news about Tether (USDT) losing its dollar peg caused a brief sell-off. Earlier, fake reports of Bitcoin ETF approval made BTC spike before correcting. Just like the Bybit-breach rumor, these cases show how unverified news can move markets fast.

Lessons From Crypto Misinformation

This case shows how risky unverified news can be in the crypto-world. Just one tweet from an unknown account was enough to cause chaos and move the market. Experts and researchers like Anthony Pompliano ( in his 2018 research view ) have shown how easily counterfeit news spreads when investors don’t review sources.

The February 2025 hack taught the community that even cold wallets and multi-signature models can be bypassed by skilled attackers. But today’s Bybit breach rumor underscores a different risk: misinformation. So, staying informed about possible aspects is the key element for a successful journey in the uncertain markets, proved this incident.