Fact Check: Is Bybit safe?

Is Bybit Safe? A Detailed Examination of the Claim

Introduction

The question of whether Bybit, a cryptocurrency exchange, is safe has gained prominence, especially following reports of significant security incidents. This article explores the various claims surrounding Bybit's safety, analyzing the available evidence and expert opinions without reaching a definitive verdict.

What We Know

Bybit is a cryptocurrency exchange founded in 2018, primarily known for its derivatives trading. It has gained popularity for its advanced trading features and high transaction speeds, reportedly handling up to 135,000 transactions per second 1. However, the platform has faced scrutiny regarding its security measures and regulatory compliance.

1. Security Measures: Bybit claims to have a dedicated security team and protocols to mitigate the impact of security incidents. As of 2023, it maintains an insurance fund exceeding 100 million USDT to cover potential losses from hacks 5.

2. Recent Security Incidents: In February 2025, Bybit reportedly suffered a massive hack, resulting in the theft of approximately $1.5 billion, marking it as one of the largest cryptocurrency thefts in history 810. This incident raises significant concerns about the platform's operational security.

3. Regulatory Compliance: Bybit has made changes to its policies, including requiring Know Your Customer (KYC) verification for users, which may indicate an effort to comply with regulatory standards 2. However, the exchange has faced regulatory challenges in various jurisdictions, which could affect its operations and user safety.

4. User Reviews and Ratings: Various reviews highlight both the advantages and disadvantages of using Bybit. While some sources praise its liquidity and trading features 47, others express concerns about its custodial risks and potential exposure to hacks 6.

Analysis

The evidence surrounding Bybit's safety is mixed, with both supportive and critical perspectives emerging from the sources.

1. Supportive Evidence:

   • Sources like CoinFi and Cloudwards emphasize Bybit's advanced security protocols and the existence of an insurance fund, which could provide a safety net for users 45. These claims are bolstered by the exchange's focus on maintaining a robust trading environment.

2. Critical Evidence:

   • The report of the $1.5 billion hack raises serious questions about Bybit's security practices and the effectiveness of its insurance fund. The incident was executed by North Korean hackers, which suggests that even well-established exchanges are vulnerable to sophisticated attacks 810. This incident casts doubt on the reliability of Bybit's security claims.

3. Source Reliability:

   • The sources vary in credibility. For instance, Cointelegraph and Cloudwards are generally regarded as reliable within the cryptocurrency space, providing detailed analyses and comparisons 23. However, sites like Cryptsy, while informative, may have a vested interest in promoting certain exchanges, which could introduce bias 5.

4. Methodological Concerns:

   • Many reviews do not provide comprehensive data on user experiences or detailed analyses of security incidents. More empirical data, such as user testimonials regarding security incidents or independent security audits, would enhance the reliability of the claims made about Bybit's safety.

Conclusion

Verdict: Partially True

The assessment of Bybit's safety is classified as "Partially True" based on the mixed evidence available. On one hand, Bybit has implemented security measures, including a significant insurance fund and KYC compliance, which suggest a commitment to user safety. On the other hand, the occurrence of a major hack resulting in a substantial loss raises serious concerns about the effectiveness of these measures and the overall security of the platform.

This verdict acknowledges that while there are positive aspects to Bybit's security protocols, the reality of its vulnerability to significant security breaches cannot be overlooked. The evidence suggests that users should exercise caution and remain aware of the risks involved in trading on the platform.

It is important to note that the available evidence has limitations, including the potential bias of sources and the lack of comprehensive data on user experiences. As such, readers are encouraged to critically evaluate the information presented and consider their own risk tolerance when engaging with cryptocurrency exchanges like Bybit.

Sources

1. Bybit Review In 2023: Pros, Cons, New Products, and Warnings! - Investors Keep https://investorskeep.com/review/bybit-review-in-2023-pros-cons-new-products-and-warnings/
2. Bybit Review 2025 [Features, Fees, Security & More] - Cloudwards https://www.cloudwards.net/bybit-review/
3. Bybit Review 2025: Features, Fees, Security & More - Cointelegraph https://cointelegraph.com/learn/articles/bybit-review
4. Bybit Review: Is Bybit Safe & Legit in 2023 - CoinFi https://www.coinfi.com/cryptocurrency-exchanges/bybit-review
5. Is Bybit Safe: A Complete Security Analysis Guide - Cryptsy https://cryptsy.com/is-bybit-safe-a-complete-security-analysis-guide/
6. Is Bybit A Trusted Platform In 2025? - Coin Bureau https://coinbureau.com/analysis/is-bybit-safe/
7. Bybit Exchange Review: Competitive Fees, Updated Pros, & Cons - Cryptopolitan https://www.cryptopolitan.com/bybit-exchange-review/
8. The $1.5B Bybit Hack: The Era of Operational Security ... - Trail of Bits https://blog.trailofbits.com/2025/02/21/the-1.5b-bybit-hack-the-era-of-operational-security-failures-has-arrived/
9. ByBit Exchange Review 2025 - Is Bybit Safe & Legal To Use? - The Money Mongers https://themoneymongers.com/exchanges/bybit-review/
10. The Bybit Heist: What Happened & What Now? - Wilson Center https://www.wilsoncenter.org/article/bybit-heist-what-happened-what-now