The recent Bybit hack is being framed as a geopolitical issue rather than a fundamental flaw in cryptocurrency security, according to Crucible Capital’s Meltem Demirors. Speaking on CNBC’s Power Lunch, Demirors, alongside TrustedSec CEO David Kennedy, attributed the attack to North Korea’s notorious Lazarus Group, which has a history of targeting digital assets.
A Sophisticated Cyberattack
Kennedy highlighted that the Bybit hack closely resembled previous cyberattacks, which often rely on social engineering tactics to infiltrate developer accounts.
“They did a lot of research and a lot of understanding around the exchanges and the infrastructure, as well as how these types of, you know, public and private key cryptography components work,” Kennedy explained.
The hackers specifically exploited Bybit’s Safe Wallet infrastructure, using a network of 50,000 addresses to obfuscate transaction trails and move stolen funds undetected.
Crypto Security Remains Intact
Despite the severity of the breach, Demirors emphasized that Bitcoin’s cold storage security remains uncompromised. However, she acknowledged that private key vulnerabilities continue to pose risks across the cryptocurrency industry. The attack has led to increased collaboration among security providers, exchanges, and government agencies to enhance asset tracking and freezing efforts.
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Demirors noted that if such an attack had occurred in 2022 or 2023, the impact on Bybit could have been far more severe. However, improved industry-wide cooperation has significantly bolstered security responses and minimized potential losses.
A North Korea Issue, Not a Crypto Problem
Both experts agreed that while the hack underscores the importance of strengthened security measures, it does not undermine Bitcoin’s long-term investment case.
“This is a North Korea issue. It will continue to be a North Korea issue,” Demirors stated. “The Trump administration is smart on crypto. They view this not as a crypto issue.”
Kennedy reinforced the argument that while cryptocurrency systems are inherently secure, human vulnerabilities remain the primary risk factor. The Bybit hack serves as yet another reminder that cybersecurity measures must continuously evolve to counter the tactics of sophisticated threat actors like Lazarus Group.
