Bybit Hack Elevates Kim Jong Un as Crypto Influencer in 2025

Impact of the Bybit Hack on the Crypto Industry

The record hack of the Bybit platform in February 2025, amounting to $1.4 billion, exposed structural weaknesses in custody systems that were previously considered industry standards, such as cold storage and multisig wallets. This breach marked the largest in crypto history, although it was later overshadowed by discoveries that the Chinese mining pool LuBian had lost $3.5 billion in 2020.

Ishai Shoham, product head at crypto infrastructure company Utila, commented: "The Bybit hack demonstrated that cold storage and multisig labels are meaningless if the approved flow, transaction visibility, or signer environment can be manipulated." The incident also prompted the Financial Action Task Force (FATF) to urge regulators worldwide to address illicit financing risks in cryptocurrencies.

FATF and Regulatory Response

In a report published in June 2025, the FATF labeled the Bybit hack as the largest crypto theft ever and warned that cross-chain activity, stablecoins, and uneven regulatory enforcement were amplifying illicit financing risks faster than they could be controlled. Jurisdictions are urged to bolster licensing and assess the risks associated with foreign exchange platforms.

Joshua Chu, a recovery lawyer and co-chair of the Web3 Association in Hong Kong, stated: "This case underscores the ongoing gaps in travel rule and enforcement. Once funds enter DeFi, it becomes difficult to prevent layering and money laundering, especially given the automation that makes these processes faster and easier."

Kim Jong Un's Influence in the Crypto Realm

By 2025, Kim Jong Un was reportedly recognized as the most influential person in crypto, even while political attention was focused on regulating cryptocurrencies. "If you ask me who was the most influential person in crypto in 2025, I would say Kim Jong Un," noted an expert. This coincided with a tightening of licensing regimes in Singapore and similar actions in Thailand and the Philippines.

This breach transformed the industry, leading platforms to implement stricter governance based on transaction behavior rather than address-based restrictions. Bybit CEO Ben Zhou maintained open communication with users during the incident, setting a precedent for how other platforms should respond in the event of a breach.