Crypto traders experienced both victories and losses on Friday. Coinbase celebrated the dropping of a lawsuit by the SEC, while Bybit suffered a massive hack resulting in the theft of $1.5 billion, the largest crypto theft ever recorded. Bybit confirmed the breach, revealing that hackers took control of an Ethereum cold wallet and transferred the funds to an unknown address. The hack raised concerns about crypto security under deregulation, as exchanges face fewer compliance checks and become easier targets for hackers. The stolen Ethereum has been traced to wallets connected to North Korea's Lazarus Group, a notorious cybercriminal unit responsible for major crypto heists. The group follows a complex laundering process that makes fund recovery almost impossible. Bybit secured a loan to cover withdrawals, but the stolen funds are lost, forcing the exchange to buy Ethereum on the market to settle its debts. This situation could result in increased ETH prices and downward pressure on BTC as Lazarus cashes out its gains. Bybit faced a massive bank run following the hack, with 350,000 withdrawal requests overwhelming the platform's processing speed. Rival exchange Bitget stepped in with a $106 million loan to stabilize withdrawals. Security experts warn that Lazarus channels stolen crypto into North Korea's nuclear and missile program. In 2021, the majority of stolen funds (58%) were in the form of Ether, while Bitcoin accounted for less than one fourth. The laundering process has become more complex, with Lazarus using mixers to hide transactions. Bybit has completed all withdrawals and plans to release a full incident report and security measures in the coming days.



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