Securing Your Crypto Exchange Account After the Bybit and Infini Breaches

The cryptocurrency security landscape shifted dramatically in late February 2025. Within days, the industry witnessed two major breaches: the $1.5 billion Bybit hack executed by North Korean state-sponsored actors on February 21, and the $49.5 million Infini neobank exploit on February 24. Together, these incidents compromised nearly $1.55 billion in digital assets and exposed fundamental weaknesses in how platforms and users approach security. With Bitcoin hovering around $91,418 and Ethereum at $2,513 on this date, the financial stakes for every participant in the crypto ecosystem have reached unprecedented levels.

The Threat Landscape

The Bybit hack demonstrated the sophistication of state-sponsored attacks. North Korean hackers, identified as being linked to the DPRK, compromised a Safe developer’s computer to inject malicious JavaScript into the frontend interface used for Bybit transactions. During what appeared to be a routine transfer from Bybit’s Ethereum cold wallet to a hot wallet, the exchange unknowingly signed a malicious transaction that authorized the transfer of approximately 401,000 ETH to attacker-controlled addresses.

The stolen assets were quickly dispersed through intermediary wallets, converted to BTC and DAI via decentralized exchanges and cross-chain bridges, and partially held dormant — a known DPRK tactic to outlast heightened post-breach scrutiny. By February 24, Bybit had managed to secure $1.23 billion in ETH through bridge loans, whale deposits, and over-the-counter transactions, but a significant portion of the stolen funds remained at large.

The Infini breach, while smaller in scale, revealed a different but equally dangerous vulnerability: insider threats. A former developer retained administrative access to Infini’s smart contracts and used those privileges to drain $49.5 million from the platform. The attacker converted the funds into 17,696 ETH almost immediately.

Core Principles

Protecting your cryptocurrency holdings in this environment requires a multi-layered approach. The first principle is to never keep more funds on an exchange than you need for active trading. Exchanges, regardless of their size or reputation, remain prime targets for sophisticated attackers. The Bybit hack proved that even cold wallets can be compromised through supply chain attacks on the signing interface.

The second principle is hardware wallet usage. A hardware wallet stores your private keys on a dedicated physical device that never exposes them to the internet. Even if an exchange is compromised, funds held in a properly secured hardware wallet remain safe. Look for devices that support clear signing — displaying full transaction details on the device screen — so you can verify exactly what you are approving before signing.

The third principle is operational separation. Use different email addresses, unique passwords, and dedicated devices for your crypto activities. Compartmentalizing your digital identity reduces the attack surface available to adversaries who may be targeting you based on your exchange activity or public wallet holdings.

Tooling and Setup

Start with a reputable hardware wallet from a manufacturer with a proven security track record. Initialize the device in a clean environment, write down your seed phrase on a durable physical medium — never digitally — and store it in a secure location such as a safe or a bank deposit box. Consider using a metal seed phrase backup for protection against fire and water damage.

Enable two-factor authentication on every exchange account, but avoid SMS-based 2FA, which is vulnerable to SIM-swapping attacks. Instead, use an authenticator app or, ideally, a hardware security key that supports the FIDO2/WebAuthn standard. Some exchanges now support passkeys, which offer a similar level of security with greater convenience.

For active traders who must keep funds on exchanges, enable every available security feature: withdrawal whitelist restrictions that limit transfers to pre-approved addresses, anti-phishing codes that help identify legitimate exchange communications, and login notifications that alert you to unauthorized access attempts.

Ongoing Vigilance

Security is not a one-time setup — it requires continuous attention. Monitor your exchange accounts and wallet addresses regularly for any unauthorized activity. Set up transaction alerts so you receive immediate notifications of any withdrawals or transfers. Review your approved token allowances and smart contract permissions periodically, revoking any that you no longer need.

Stay informed about the latest security threats and breach patterns. The techniques used in the Bybit hack — compromising developer tools and injecting malicious code into signing interfaces — represent an evolution in attack methodology that users must understand to defend against. The Infini incident reminds us that even the platforms we trust can have internal security gaps.

Final Takeaway

The convergence of the Bybit and Infini breaches in a single week marks a watershed moment for crypto security. Whether the threat comes from state-sponsored hackers or insider exploits, the fundamental defense remains the same: take personal responsibility for your security. Use hardware wallets, enable strong authentication, minimize your exchange exposure, and stay vigilant. In a market worth over $3 trillion, the cost of complacency is measured in billions.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making any financial decisions.