Cyvers AI Could Have Prevented the Bybit Hack

As the cryptocurrency industry continues to mature, its vulnerabilities have become glaringly apparent, especially in the wake of the staggering $1.5 billion hack of Bybit, one of the world’s leading crypto exchanges. The incident, which unfolded recently, serves as a sobering reminder of the sophistication of modern cyber threats and the urgent need for advanced, proactive security measures.

According to a detailed post by Deddy Lavid, CEO of Cyvers, and further insights from Cyvers Alerts on social media, a cutting-edge AI-driven solution could have not only detected but also prevented this catastrophic breach. This op-ed explores the nature of the Bybit hack, the role Cyvers AI could have played, and why the crypto industry must urgently adopt such technologies to safeguard its future.

The Bybit Breach: A Masterclass in Deception

The Bybit hack, as described in Lavid’s post and the accompanying Cyvers Alerts, was a meticulously executed attack attributed to North Korean hackers. These cybercriminals employed social engineering tactics to install malware that compromised Bybit’s front-end interface.

The malware cleverly disguised fraudulent transactions as legitimate ones, tricking Bybit’s signers into blind-signing malicious activities. This deception enabled the hackers to siphon off an estimated $1.5 billion in digital assets, with the suspicious address already swapping funds before the breach was fully detected.

The scale of the loss—potentially one of the largest in crypto history—underscores the devastating impact of such attacks on investor confidence and the broader market.

Cyvers Alerts’ real-time monitoring detected abnormal activity involving the @BybitOfficial wallet, flagging suspicious patterns and reaching out to warn the exchange. However, by the time these alerts were issued on February 21, 2025, the damage was already in motion.

The attack flow timeline and simulation results provided by Cyvers reveal a critical vulnerability: the hackers exploited smart contract access controls, executing high-risk delegation calls that led to significant future losses. The data points to four critical alerts, each tied to transactions with a total value loss exceeding $1.4 billion, highlighting the speed and stealth of the operation.

How Cyvers AI Could Have Stopped the Attack

Deddy Lavid’s assertion that Cyvers AI could have prevented this hack is not mere hyperbole—it’s backed by a compelling technological narrative. Cyvers’ Pre-Transaction Threat Interceptor, an AI-powered firewall for wallets, is designed to analyze transactions in real-time, detecting and blocking high-risk threats before they execute.

In the case of Bybit, this system would have scrutinized the final state of each transaction, identifying the malicious alterations to the front-end interface and the fraudulent delegation calls flagged as “critical” in Cyvers’ simulation results.

The simulation, as shown in the provided images, demonstrates how Cyvers AI would have intercepted the attack. It identifies the risk level as “critical,” with a specific alert for a “high-risk delegation call that will lead to future loss.”

By leveraging machine learning and real-time analytics, Cyvers could have instantly recognized the social engineering tactics and malware used by the North Korean hackers, halting the transactions before any funds were lost. Lavid emphasizes that, had Bybit been a Cyvers customer, the $1.5 billion hack would have been stopped “instantly with zero losses.”

This capability is particularly crucial in an industry where traditional security measures—such as manual reviews or post-hoc audits—are often too slow to counter the rapid, automated nature of modern cyberattacks.

Cyvers’ AI doesn’t just react; it proactively defends, using historical data, pattern recognition, and predictive modeling to stay ahead of threat actors. The Bybit case illustrates a missed opportunity to leverage such technology, but it also offers a blueprint for how the industry can fortify itself moving forward.

The Broader Implications for Crypto Security

The Bybit hack is not an isolated incident. North Korean hacking groups, such as Lazarus, have long targeted cryptocurrency platforms, exploiting their decentralized nature and the sheer value of digital assets. According to reports, these groups have stolen billions over the years, funding illicit activities and evading international sanctions.

The Bybit breach, with its use of sophisticated social engineering and malware, exemplifies the evolving tactics of these threat actors and the inadequacy of conventional security measures in the face of such ingenuity. For crypto exchanges and wallet providers, the stakes couldn’t be higher.

Beyond the financial losses, hacks erode trust in the ecosystem, deter institutional adoption, and invite regulatory scrutiny. Governments worldwide are already tightening oversight of the crypto space, and incidents like Bybit’s could accelerate calls for stringent regulations that might stifle innovation if not balanced with practical security solutions.

Cyvers AI’s approach—combining real-time monitoring, AI-driven threat interception, and actionable alerts—represents a potential game-changer. However, its effectiveness depends on widespread adoption. Many crypto platforms, including Bybit, may rely on legacy systems or underestimate the sophistication of threats until it’s too late.

The post-hack outcry and Cyvers’ outreach to secure platforms underscore a critical need for proactive investment in AI-driven security. As Lavid notes, interested parties can reach out to his team for demonstrations, signaling an opportunity for the industry to learn from this disaster.

A Call to Action

The Bybit hack is a wake-up call for the cryptocurrency industry. While the loss of $1.5 billion is devastating, the real cost could be the long-term erosion of trust and growth potential if such breaches become the norm. Cyvers AI’s claim that it could have prevented this attack isn’t just a marketing pitch—it’s a challenge to the industry to rethink its approach to security.

Crypto platforms must prioritize real-time, AI-powered defenses that can detect and neutralize threats before they execute. They should invest in technologies that analyze transaction patterns, monitor wallet behavior, and counter social engineering tactics.

Collaboration with security firms like Cyvers, along with transparent reporting and rapid response protocols, will be essential to rebuilding confidence.

For regulators and policymakers, the Bybit hack highlights the need for a balanced approach—encouraging innovation while mandating robust security standards. For investors, it’s a reminder to scrutinize the security measures of the platforms they use, favoring those with advanced, proactive protections.

In the end, the Bybit hack isn’t just a story of loss—it’s a story of opportunity. By embracing solutions like Cyvers AI, the crypto industry can turn a moment of crisis into a catalyst for transformation, ensuring that such devastating breaches become a thing of the past. The technology exists; the question is whether the will to adopt it will follow. As of February 2025, the clock is ticking.