Bybit Partners with Zodia Custody to Strengthen Asset Security After $1.45 Billion Hack

Following one of the most significant security breaches in cryptocurrency history, Bybit is implementing robust new security measures to protect its users. The exchange suffered a staggering $1.45 billion hack in February 2025, marking the largest theft from a digital asset platform to date. In response, Bybit has partnered with Zodia Custody, a digital asset custodian backed by major financial institutions like Standard Chartered, to enhance asset security and mitigate future risks.

This collaboration brings segregated custody and off-venue settlement services for Bybit’s institutional clients. Through this model, client funds remain securely stored in Zodia’s custody, allowing trading on Bybit without direct exposure to exchange-related risks. This structure aims to eliminate the possibility of unauthorized access, prevent the commingling of funds, and reduce the vulnerabilities that hackers typically exploit in centralized exchanges. Bybit hopes this approach will restore confidence among investors shaken by the breach.

The February security breach, which resulted in the loss of approximately $1.5 billion in digital assets, served as a wake-up call for the industry. While Bybit has yet to disclose the full details of how the attack occurred, the incident highlights the persistent threats facing crypto exchanges. The need for stricter security policies, third-party custody solutions, and improved risk management protocols has become more evident than ever. Bybit’s latest initiative signals a shift toward greater institutional-grade security in the crypto market.

This move aligns with a growing trend of crypto exchanges partnering with established financial custodians to reinforce security measures. Bybit is following in the footsteps of other major platforms that are working with traditional financial entities to integrate better risk management solutions. Such partnerships not only protect assets but also help bridge the gap between crypto and traditional finance, making the industry more appealing to institutional investors.

With this new custody arrangement, Bybit aims to demonstrate its commitment to improving security standards and preventing future breaches. As regulatory scrutiny increases and the crypto market matures, measures like these will likely become the norm for exchanges seeking to maintain user trust and safeguard digital assets in an evolving landscape.