Gaming
Crypto Industry Collaboration in the Wake of the Bybit Theft
The crypto market is no stranger to major hacks, but the recent Bybit theft set a staggering new record. North Korea-affiliated hackers from the notorious Lazarus Group drained approximately $1.5 billion in ETH from the crypto exchange. Unlike previous disasters involving FTX, Celsius, or Terra, Bybit managed to avoid collapse thanks to swift and coordinated industry collaboration.
Facing a potential liquidity crisis, Bybit secured emergency support from key crypto firms, includingBinance, Bitget, and Galaxy Digital. Through transparency, decisive action, and collective efforts, the company demonstrated how strong industry collaboration could help exchanges weather even the most severe attacks.
Binance CMO Rachel Conlans commented on recent cyber attacks in the crypto industry, “The evolving nature of cyber threats in the crypto industry reinforces the need for exchanges and custodians to continuously strengthen their security frameworks. As threats continue to grow in sophistication, so must our defenses. The recent attack was a phishing attack on the UI system, underscoring the importance of securing all aspects of any exchange’s infrastructure, including user interfaces, to protect against such sophisticated threats. This is a wake-up call for the industry to implement multi-layered security, real-time threat detection, and robust risk mitigation strategies.
Conlan added, “In the crypto world, trust and security are the cornerstones of crypto adoption, and it is critical that platforms work proactively to keep ahead of emerging risks, guaranteeing user safety and safeguarding user accounts remains the top priority.”
How the Bybit Hack Unfolded
In the following sections, we’ll explore exactly how the Bybit hack happened and examine how the crypto exchange navigated the crisis. Let’s dive in!
The Attack
The hack began with a targeted compromise of AWS session tokens belonging to a developer at Safe, Bybit’s multisig wallet provider. Lazarus hackers exploited this access by injecting malicious JavaScript code into Safe’s frontend user interface. According to Safe’s detailed post-mortem report, this compromised interface tricked Bybit’s team into signing what appeared to be a legitimate wallet transaction but was in fact unauthorized.
As a result, Bybit inadvertently approved the transfer of roughly 401,000 ETH—valued at nearly $1.5 billion—to wallets controlled by the hackers. To obscure their trail, the attackers quickly dispersed these funds through numerous intermediary addresses. This strategy, common among sophisticated cybercriminals, aimed to confuse blockchain analysts and hinder tracing efforts.
The hackers then converted portions of the stolen ETH into other cryptocurrencies, such as BTC and DAI. They utilized decentralized exchanges, cross-chain bridges, and no-KYC instant swap services to move assets between different blockchains and obscure transaction paths.
Interestingly, the Lazarus Group initially kept a substantial portion of the funds dormant across multiple wallets. North Korean hackers often use this tactic to avoid immediate detection and strategically delay their laundering operations. However, within just ten days following the theft, they successfully laundered 100% of the stolen crypto—approximately $1.4 billion.
Bybit’s Response
Bybit’s rapid reaction to the hack proved critical. Within minutes of detecting the breach, the exchange isolated the compromised cold wallet, halting further unauthorized transfers. A forensic investigation was immediately launched, involving blockchain analytics firms, cybersecurity specialists, and law enforcement to track the stolen assets.
To prevent similar incidents in the future, Bybit partnered closely with Safe to overhaul its multisig wallet security protocols. The exchange also implemented stricter manual verification processes for high-value transactions and enhanced its wallet infrastructure. These decisive actions helped restore user confidence and stabilize the situation.
Despite the enormous loss, Bybit reassured customers that all funds remained fully backed and accessible. Notably, the exchange kept withdrawals open, sending a strong signal of transparency. This crucial step helped prevent panic and maintained user trust during an uncertain period.
How Industry Collaboration Helped Bybit Survive the Aftermath of the Attack
Collaboration with leading crypto firms was vital in quickly securing Bybit’s financial stability. Within just 72 hours, the exchange raised emergency liquidity, totaling 447,000 ETH through loans and support from Binance, Bitget, and Galaxy Digital. By strategically injecting liquidity rather than purchasing Ether on the open market, Bybit prevented price volatility and rapidly replenished its reserves.
Transparency remained central to Bybit’s recovery efforts. CEO Ben Zhou publicly addressed users through a live-streamed Q&A just 30 minutes after the breach became public knowledge. In the following days, Zhou continued providing daily updates on fund recovery, security enhancements, and internal investigations.
To further reassure users, Bybit completed a full proof-of-reserves audit on February 24. The audit independently verified the exchange’s solvency and confirmed that user assets were backed 1:1. This proactive transparency set a new industry standard for crisis management following major hacks.
Blockchain’s inherent transparency also supported recovery efforts. Public transaction records enabled industry participants and authorities to swiftly trace stolen assets. Through rapid coordination with global exchanges and regulators, more than $40 million worth of the stolen crypto was successfully frozen—highlighting the value of real-time industry cooperation.
This collaboration extended beyond immediate recovery. Bybit continued working closely with law enforcement agencies and cybersecurity experts to seize additional assets and identify the attackers. These unified efforts underscored the crypto industry’s growing maturity and commitment to security.
Ultimately, Bybit’s crisis highlighted the increasing importance of collective action. With hackers becoming more sophisticated, industry-wide coordination, transparency, and swift response capabilities are more critical than ever. Bybit’s survival serves as a powerful example of how effective collaboration can help crypto companies overcome even the most severe security threats.
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Gaming
Dream Sports sees 100 plus exits after gaming ban forces overhaul
Company splits into eight units as real money gaming law hits revenue.
MUMBAI: For a company built on fantasy leagues, reality has suddenly rewritten the rulebook. More than 100 employees have exited Dream Sports, the parent of Dream11, after the company reorganised its operations following India’s ban on real money online gaming. The shake up came after the Promotion and Regulation of Online Gaming Act, 2025 came into force in August 2025, prohibiting games where users deposit money expecting winnings. The regulation struck at the heart of the fantasy gaming industry and dramatically affected Dream Sports’ core business, wiping out about 95 percent of its revenue and all of its profits.
In response, the Mumbai based company shifted into what chief executive officer Harsh Jain described as “startup mode”, splitting its operations into eight independent business units in December.
Around 700 employees were reassigned across these newly formed ventures based on their experience and interests. However, roughly 15 percent opted to leave the company.
A spokesperson for Dream Sports said many of those who exited were experienced professionals accustomed to running scaled businesses rather than early stage ventures.
“Since some of these employees were experienced with running high scale businesses and not startups, around 15 percent chose to leave and join other scaled companies or start ventures of their own,” the spokesperson said.
Despite the departures, the company noted that the attrition rate is only slightly higher than its earlier level of around 10 percent before the ban. Dream Sports now has close to 950 employees and is not currently hiring, choosing instead to focus on stabilising its existing workforce.
The restructuring has transformed Dream Sports from a fantasy gaming company into a broader sports entertainment platform. The eight units now operate independently, each focusing on different segments of the sports and technology ecosystem.
These include Dream11, sports streaming platform Fancode, sports travel service DreamSetGo, mobile game Dream Cricket and artificial intelligence initiative Dream Sports AI, which includes sports analytics platform Dream Play.
Other ventures include fintech product Dream Money, open source initiative Dream Horizon and the philanthropic arm Dream Sports Foundation.
As part of cost saving efforts, Dream Sports also relocated its headquarters from Bandra Kurla Complex to Worli earlier this year. The new office, called Dream Sports Stadium, brings teams from its various brands together under one roof to improve collaboration and operational efficiency.
Jain had earlier said the company removed bonus lock in timelines for employees hired in recent years, allowing those who wished to leave to exit with pro rata payouts.
“We want people who are fully into the startup mode and willing to work for it, and we will share that reward if it comes,” he said.
Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream Sports was last valued at 8 billion dollars after raising 840 million dollars in 2021 from investors including Falcon Edge Capital, DST Global, D1 Capital Partners, RedBird Capital Partners, Tiger Global Management, TPG and Footpath Ventures.
The new gaming law has forced several companies in the fantasy gaming sector to either shut down or pivot their business models, signalling a significant reset for one of India’s fastest growing digital entertainment industries.
