Bybit, a major crypto exchange, has experienced a sharp decline in market share following the $1.5 billion security breach it suffered in February.
Data from Kaiko reveals that Bybit’s market share plummeted from nearly 20% on Feb. 21 — the day of the attack — to as low as 5% on March 2. However, the exchange’s numbers have slightly improved to 9.04% as of March 9.
According to the data, Binance emerged as the biggest beneficiary, with its market dominance surging to 62% in the immediate aftermath. However, that figure has since declined to around 50%.
On Feb. 21, hackers exploited vulnerabilities in Bybit’s cold wallet system, executing the largest exchange heist to date. The attackers drained $1.5 billion in Ethereum, exposing weaknesses in the platform’s security framework.
Since then, authorities and blockchain analysts have been racing to trace and recover the stolen assets from the North Korean Lazarus Group, a cybercriminal organization known for advanced laundering tactics.
Blockchain analytical firm Elliptic suggests that at least $300 million of the stolen funds have already been laundered, significantly complicating efforts to reclaim the assets.
