Recently, cryptocurrency exchange Bybit suffered one of the largest digital heists in history, with hackers stealing over $1.5 billion from its Ethereum cold wallet (Forbes). Security truly matters for users of crypto exchanges. Nobody likes their hard-earned money lost.

Bybit’s co-founder and CEO, Ben Zhou, revealed that the attackers exploited a spoofed user interface and URL, tricking wallet signers into unintentionally approving malicious transactions. This allowed the hackers to alter smart contract logic, gain control over the Ethereum cold wallet, and transfer out all funds (Bybit Announcements). In response, he also mentioned that Bybit is solvent even if this hack loss is not recovered, as all of clients assets are 1 to 1 backed, and they are definitely able to cover the loss.

The notorious North Korean hacking group, Lazarus, has been accused of carrying out the largest crypto heist in history, allegedly stealing an astonishing $6 billion worth of digital assets from the West. Reports suggest that the stolen funds are being used to finance Pyongyang’s nuclear program, making Lazarus responsible for some of the most devastating crypto scams to date. Some infamous hacks done by Lazarus include the Ronin Network breach in March 2022, where hackers stole approximately $540 million worth of cryptocurrency from a project linked to the popular blockchain game Axie Infinity. At that time, this was one of the largest crypto heists ever recorded, exposing the vulnerabilities of cross-chain bridges and multi-signature security models.

For more details on the Bybit hack, check out:

Hotcoin as a Secure Choice

Hotcoin’s Global Compliance:

  • U.S. MSB License – Hotcoin is registered with FinCEN (Financial Crimes Enforcement Network) as a Money Services Business (MSB), ensuring regulatory compliance in the U.S.
  • AUSTRAC Regulation – Hotcoin is also registered under AUSTRAC in Australia, following strict AML (Anti-Money Laundering) and CTF (Counter-Terrorism Financing) laws.

Hotcoin’s Advanced Security Measures:

  • Offline Private Key Storage: Most user assets are stored offline to prevent hacking.
  • Multi-Signature Protection: Transactions require multiple authorizations, making unauthorized access nearly impossible.
  • MPC (Multi-Party Computation): Cutting-edge cryptographic technology ensures that private keys are split among multiple parties, so no single entity can access the full key.
  • Multi-Factor Authentication (MFA): Extra security layers protect user accounts from unauthorized logins.
  • SSL Encryption & Cold Wallets: Strong encryption protects data transmission, while cold storage wallets minimize online attack risks.
Hotcoin Compliance Risk Management

Hotcoin is entirely committed to working with global regulators and security organizations to maintain a safe and trustworthy trading environment for its users. With a seven-year track record of zero security breaches, Hotcoin stands as a reliable exchange in the volatile world of cryptocurrency.

The recent wave of crypto heists serves as a stark reminder: even the biggest names in the industry can fall victim to cyberattacks. From high-profile exchange breaches to sophisticated hacking groups like North Korea’s Lazarus Group siphoning billions, the risks in the crypto space are real and ever-evolving.

At Hotcoin, we understand that security is not just an option—it’s a necessity. That’s why we take proactive measures to safeguard user funds from cyber threats that could jeopardize their assets. As crypto continues to evolve, so do the threats that come with it. Choosing a secure exchange is more important than ever. With a proven track record, global compliance, and top-tier security infrastructure, Hotcoin remains a trusted choice for traders looking to safeguard their digital assets.