In the fast-moving world of cryptocurrency, trust is everything. People invest their hard-earned money in digital assets, often with little more than a promise that their funds are safe. So, when something goes wrong, panic is almost inevitable. That’s exactly what happened to Bybit, one of the biggest cryptocurrency exchanges, when hackers managed to steal a staggering $1.5 billion worth of Ethereum.

A security breach like this could have easily been the end of Bybit. We’ve seen crypto platforms vanish overnight for far less, not to mention major hacks like this. Few companies would face an attack of this magnitude and survive, so why was Bybit an exception?

Two words - Honesty PR.

This is a story of how Ben Zhou, CEO of Bybit, turned a near-catastrophic event into a big win, proving once again that being upfront, instead of hiding behind corporate jargon, could be the best PR Strategy. There is a lesson here for entrepreneurs. Let’s dive in.

The Hack: How It Happened and Who’s Behind It

Let’s start with what went down. On February 21, 2025, Bybit was in the middle of a routine transaction—moving funds from its cold wallet (a super-secure offline storage) to a hot wallet (an online wallet used for daily transactions). This is a normal process for crypto exchanges, but hackers saw an opportunity. They found a vulnerability in the transfer process and intercepted the transaction, diverting over 400,000 ETH into their wallets.

By the time Bybit’s security team realized what was happening, the funds were already gone. Crypto moves fast, and once it’s out of an exchange’s control, tracking and retrieving it can be difficult.

So, who pulled off this heist? Cybersecurity experts believe it was the Lazarus Group, a notorious North Korean hacking organization behind multiple crypto attacks in recent years. These guys aren’t amateurs—they’re professionals who fund North Korea’s economy through cybercrime. They’ve previously hit platforms like Ronin Network and Harmony Protocol, stealing hundreds of millions of dollars. And now, they had Bybit in their crosshairs.

Market Reaction: The Great Crypto Exodus

News of the hack spread like wildfire, and Bybit users panicked. Within hours, people started withdrawing their funds en masse—a classic case of a bank run, but in the crypto world. Nobody wanted to be the last one left on a sinking ship.

And honestly, can you blame them? Crypto history is filled with exchanges that vanished overnight after hacks, leaving users with nothing but regrets. Mt. Gox, FTX, and countless smaller exchanges all taught people one painful lesson: when in doubt, get your money out.

Had this continued unchecked, Bybit could have collapsed under the pressure. If too many users withdrew their assets at once, the platform’s liquidity could have been severely impacted, making recovery even harder. This is the moment when a company’s leadership makes all the difference.

Ben Zhou’s Game-Changing Transparency

Instead of hiding behind vague press releases or corporate jargon, Bybit's CEO, Ben Zhou, immediately went public with the truth.

He acknowledged the hack head-on, providing clear details about what had happened, how much had been stolen, and—most importantly—what Bybit was doing to fix it. In a public statement, he reassured users, saying:

Bybit is solvent even if this hack loss is not recovered. All client assets are 1:1 backed, and we can cover the loss.

That one statement did something powerful: it calmed the storm. People started realizing that their funds were still safe, despite the hack. The withdrawals slowed down, and Bybit was able to regain some control over the situation.

But Zhou didn’t stop there. He took to social media, hopping on X (Twitter) Spaces, Reddit threads, and Telegram groups to answer questions directly from the community. He didn’t dodge the tough questions, he didn’t sugarcoat the damage—he just told the truth.

In a world where crypto CEOs often go radio silent when things go wrong, this level of transparency was refreshing. Instead of anger, the community responded with understanding and even support.

The Crypto Community’s Unexpected Support

At first, many Bybit users were understandably skeptical. But as more people listened to Zhou’s honest approach, something unexpected happened: the community started rallying behind Bybit.

Some blockchain analysts and security experts volunteered their time to help track the stolen funds. Others shared supportive messages on social media, urging people not to abandon Bybit just because of one security failure. Some even started depositing funds back onto the platform—a complete reversal of the initial panic.

This kind of response is rare in the crypto space. Usually, when an exchange gets hacked, the only thing users want to do is run as far away as possible. But Bybit had something that many other hacked exchanges didn’t: trust.

Ben Zhou’s openness made people believe in Bybit’s future, despite the crisis. And that, more than anything else, is why the exchange was able to weather the storm.

5 Reasons Why Transparency Pays Off in Business

Bybit’s story proves that honesty isn’t just a moral virtue—it’s a winning business strategy. Here are five reasons why transparency is a game-changer, especially in industries where trust is everything:

1. It Builds Trust That Lasts

When customers feel like they’re being told the truth—even the ugly truth—they trust a company more. Trust isn’t built in good times; it’s built when things go wrong.

2. It Prevents Panic & Mass Exits

If Bybit had been slow to communicate or tried to downplay the hack, panic would have spiraled out of control. By getting ahead of the rumors, they stopped the bleeding before it was fatal.

3. It Strengthens Brand Reputation

While a hack is obviously bad news, how a company responds to it is what people remember. Thanks to their transparency, Bybit came out of this crisis with an even stronger reputation.

4. It Encourages Community Support

The crypto world is filled with people who want to help—but they’ll only do so if they believe a company is worth saving. Bybit’s honesty earned it the support of blockchain experts, ethical hackers, and loyal users.

5. It Turns a Crisis into an Opportunity

A disaster doesn’t have to mean the end. Bybit used this situation to showcase its values, reinforcing that it puts its users first. Instead of losing credibility, they gained even more loyal customers.

Conclusion: The Power of Honest Leadership

Bybit’s response to the February 2025 hack is a textbook example of how transparency can turn a disaster into an opportunity. Instead of hiding behind silence or vague statements, CEO Ben Zhou met the crisis head-on with honesty and direct communication.

As a result, Bybit didn’t just survive the hack—it came out stronger. The exchange retained its users, earned respect from the crypto community, and proved that honesty is one of the most powerful tools a business can have.

In a world where trust is often hard to come by, Bybit’s story is a reminder that sometimes, the best PR strategy is the simplest one: just tell the truth.

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Further reading: How to make your business stand out in the AI Age

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