What Lessons We Can Learn from Bybit Hack?

[armanda90]

I have positives viewed learn from Bybit exchange hack about market respond keep operation normally and user not get problem make deposit, withdraw and trading there. Difficult if any exchange have hack problem almost close withdrawing operation but Bybit have back up much money than how much loss from hack.
I have bad experienced with my local exchange market when hacking and loss just million dollar or few percent from Bybit fund hack, but the close operation and market maintance more than one week for all user can't withdraw, trade or opening the market.

[ZAINmalik75]

So what are the many lessons we can learn from this hack attack aside from the fact that we can never trust any CEX so we never make them as our wallets?

THe only lesson we can get from this hack as users is we should not hold our lifetime savings on one exchange or a centralized exchange at all because we don't own the keys so we don't own the funds even if the funds are ours. Therefore we should keep our funds in wallets.

For other exchanges the lesson should be to keep an eye on all the transactions happening in their wallets because if the transaction took place on Bybit's cold wallet two days before they should have noticed if they have given some importance.

[Wiwo]

The major lesson from all the hacks that we have heard around is to never trust third parties' control of our assets even though exchanges have a safety that guides us against customer loss of money it is still very risky to keep a large amount of your assets on an exchange.

The good thing about all of this is that those exchange and their customers are becoming more aware and conscious about their security after the incident although Bybit has not made any announcements as to how the hack happened.

[robelneo]

So what are the many lessons we can learn from this hack attack aside from the fact that we can never trust any CEX so we never make them as our wallets?

One of the lessons I learned here is to always improve your own security because these top CEX with millions of dollars can still be hacked. What more regular users like us?
So get the latest update about security and how these hackers and scammers work. We are our own bank, and banks are always targeted, so be on guard always.

[sampoerna]

There's no other lessons on here.

"Not your keys, not your coins"

Exactly, this is the gist.

Well, and then, this also depends on how Bybit's responsibility is towards the hacked coins. This is not the first time an exchange hack has happened, not only on Bybit actually, but on all exchanges, we must be really prepared for any risks.

And of course, for the lesson, don't keep any coins for too long on the exchange, especially in large amounts. Just enough for the trading process if needed.

[Aanuoluwatofunmi]

I like the way this question was brought forward by OP so that we can be able to analyze on the incident a d discuss about the implications it has on the crypto market and the investors using them in the storage of their assets, here are my own contribution.

1. We should not have all our bitcoin on centralized exchange, if anything should happen to them, our assets are gone.

2. We should also know that event like this brings about the privacy exposure of it's users, because later we may have the statistics informations of those affected by the hack.

[Mr. Magkaisa]

         -      This is just to show that we should not put too much money into centralized exchanges, we should only put in the amount that we can afford to lose if there is ever a problem with the exchange where we are putting our funds.

I am not saying that we should not trust putting funds into exchanges, we can trust and put money as long as we are prepared for anything unexpected. and if we have the opportunity to be able to buy a hardware wallet, we should buy it for less vulnerability of our assets.

[0t3p0t]

"Not your keys, not your coins"

Yeah, storing our funds on exchanges really is not safe since they have the full control of our assets. That hack teaches lessons to those who are affected to never store their funds ever again especially those who have huge amount of funds in exchanges that is very risky. Picture this, it only took minutes for the hackers to take out all those assets from the exchange I don't think we like that. 😅

[Vx1]

If I think about it, a big exchange like Bybit which certainly has a strong security system can still be hacked. Moreover, our personal accounts which only have general security, of course here if we have a lot of assets in our wallet or exchange account then we have to be extra careful. Because actually disaster can come anytime and anywhere.

[Sim_card]

I have positives viewed learn from Bybit exchange hack about market respond keep operation normally and user not get problem make deposit, withdraw and trading there. Difficult if any exchange have hack problem almost close withdrawing operation but Bybit have back up much money than how much loss from hack.
I have bad experienced with my local exchange market when hacking and loss just million dollar or few percent from Bybit fund hack, but the close operation and market maintance more than one week for all user can't withdraw, trade or opening the market.

That's because your local exchange is broke. However, Bybit hack didn't affect users storing funds in it is not a reason for anyone to use an exchange as his private wallet because you mighy be a victim in the next exchange hack. Bybit have given more confidence to customers and people that their funds are SAFU.

[Findingnemo]

Lazarus is just part of North Korean government.

The takeaway for the user should be don't keep your funds in exchanges, we had the exchanges hacked in the past and this Bybit isn't going to be the last either so just keep the funds secured as much as possible.

[rizqillah]

I have positives viewed learn from Bybit exchange hack about market respond keep operation normally and user not get problem make deposit, withdraw and trading there. Difficult if any exchange have hack problem almost close withdrawing operation but Bybit have back up much money than how much loss from hack.
I have bad experienced with my local exchange market when hacking and loss just million dollar or few percent from Bybit fund hack, but the close operation and market maintance more than one week for all user can't withdraw, trade or opening the market.

That's because your local exchange is broke. However, Bybit hack didn't affect users storing funds in it is not a reason for anyone to use an exchange as his private wallet because you mighy be a victim in the next exchange hack. Bybit have given more confidence to customers and people that their funds are SAFU.

We should not use exchange wallet to store many assets, only for trading or making transactions. because if we are not careful it can be hacked.
And bybit as we know, this is actually a warning not to store many assets there.
I only trade on bybit, we must be careful in making transactions anywhere.

[Z-tight]

The same lesson we learnt many years ago when mt. Gox collapsed, but sadly not many people pay attention to these things. It is the same lesson we learnt when ftx collapsed, and the creditors are just getting their money back this year. There is nothing new to be learnt, use a self custodial wallet, don't trust any custodial service with your coins.

[JoyMarsha]

The people that this bybit hack should be a lesson to, are those centralized exchanges. They should confirm and reconfirm their wallet addresses before sending or bypassing any crypto assets from one wallet to another because what this hackers does is create a similar wallet address that looks like the main wallet of the exchange they want to hack.

[Cryptsafe]

I will reiterate that all crypto enthusiasts should always remember the slogan "not your keys, not your coin" before they think of putting their assets anywhere for safety. These days, third parties can not guarantee the safety of their exchange not to talk of securing customer's assets as it has been happening for quite some time now. No matter how sophisticated an exchange is, it can not guarantee asset protection just like they are being hacked and funds belonging to investors stolen from them.

It is just better to keep your assets under your custody and do well to properly observe security measures to protect your assets. Avoid clicking links and ads, constantly update your wallet version and also your phone's Android version whenever the update shows up, and avoid online surveys you have no idea of asking if you have crypto assets or are knowledgeable about crypto. These are what you as an individual needs to know and do to keep your assets safe.