In this article, I will break down how the Lazarus Group, a state-sponsored cybercriminal organization, managed to breach one of the largest crypto exchanges in the world. This analysis is based on open-source research found on the internet and is intended strictly for educational purposes (not to attack, blame, or defame any individuals or institutions.)

Let’s explore how the 2025 Bybit breach happened, what techniques were used, and what lessons we can all learn from it.

The 2025 Bybit Breach: What Really Happened?

In early 2025, Bybit reportedly suffered a significant cyberattack resulting in the theft of a massive amount of Ethereum (ETH). Both FBI investigators and internal Bybit sources pointed toward the Lazarus Group, a North Korean state-sponsored hacker collective, as the key actor behind the breach.

The stolen amount was reportedly over 124,000 ETH, worth hundreds of millions of dollars at the time. The incident shocked the cybersecurity and blockchain communities alike, especially because a platform as big and sophisticated as Bybit was expected to have strong cyber defense measures.

So the big question is: How did this happen?


Dissecting the Lazarus Method: How They Broke Through



Let’s examine the known techniques Lazarus often uses.

1. Social Engineering: Exploiting Human Vulnerability

Lazarus is known for its advanced social engineering tactics, which involve manipulating individuals rather than systems. Even the most secure infrastructures can crumble when trust is abused. Whether through fake job offers, phishing emails, or impersonated partners, human error remains the weakest link. In this case, it's suspected that a high-level executive or trusted party within Bybit's ecosystem may have unknowingly provided access or permissions through manipulated communications or tools.

2. Supply Chain Attack: Attacking Through the Backdoor

Large companies often secure their core systems well but overlook third-party vendors or collaborators. Lazarus is adept at breaching less-secured partners in the supply chain and using that access as a bridge to the main target. Reports suggest that the group may have exploited a vulnerable wallet integration or third-party service that was working closely with Bybit’s infrastructure, possibly through a trusted channel involving a top-level executive.

3. Obfuscation and Laundering: Hiding the Trail

Once the ETH was stolen, Lazarus used a well-known tactic: splitting the stolen funds into smaller wallets, often across chains and through mixing services, to obfuscate any forensic trace or blockchain-based investigation. This made it extremely difficult for trackers and investigators to follow the money trail or link the transactions directly to the Lazarus group without sophisticated tracing tools.


Lessons Learned

What makes this case chilling is not just the amount stolen but how easily human trust and integration points can become vulnerabilities, even in large, security-aware institutions. No matter how “secure” a system is on paper, the human element and third-party exposure remain attack surfaces.


Final Thoughts

Cybersecurity today is not just about firewalls and encryption, it's about understanding the psychology of attackers, building layered defense mechanisms, and never underestimating the power of social manipulation. The Lazarus group proves, once again, that even the giants can fall if the details are overlooked.


🎥 Want to learn more in Bahasa ?

Check out my video where I explain the Lazarus Group's attack patterns and the Bybit case in more detail only on my YouTube channel: