After losing a staggering $1.45 billion to hackers in February 2025, Bybit didn’t just curl up and cry. The crypto exchange partnered with Zodia Custody, backed by Standard Chartered, to implement a fortress-like security system. The partnership introduced segregated cold storage vaults and institutional-grade protection measures. Now traders can sleep easier knowing their assets are locked down tighter than a bank vault. But only time will tell if this alliance truly keeps the hackers at bay.
In a dramatic turn of events, cryptocurrency exchange Bybit has partnered with Zodia Custody to shore up its security measures following a devastating $1.45 billion hack in February 2025. The Lazarus Group was identified by the FBI as the perpetrator of this sophisticated attack. Nothing like a billion-dollar breach to motivate some serious security upgrades.
The partnership with Zodia Custody, backed by financial heavyweights Standard Chartered and SBI Holdings, isn’t just another band-aid solution. It’s a complete overhaul of how institutional clients’ assets are handled. No more keeping all the crypto eggs in one vulnerable basket. Instead, Zodia’s segregated storage system keeps institutional assets safely tucked away from the exchange’s main holdings. The new system creates two discrete vaults for maximum asset protection. The implementation of cold wallet storage provides an additional layer of security by keeping assets offline and away from potential cyber threats.
Zodia Custody brings industrial-strength security to Bybit, separating institutional assets from exchange holdings for unprecedented protection.
This arrangement is pretty clever, actually. Institutional traders can now engage with Bybit’s markets without pre-funding their accounts. Their assets stay cozy in Zodia’s vault while they trade. It’s like having a secure safety deposit box at a bank while still being able to use your valuables – minus the risk of someone running off with them.
Zodia isn’t some crypto startup flying by the seat of its pants. Founded in 2020, they’ve got the serious stuff: SOC 1 Type I and II certifications, regulatory green lights from multiple authorities including the UK’s Financial Conduct Authority, and a fancy off-venue settlement system that keeps assets extra safe.
The impact on the crypto market could be significant. Institutional investors, traditionally wary of crypto’s wild west reputation, might finally feel comfortable enough to jump in. After all, Zodia’s institutional-grade security measures and regulatory compliance tick all the right boxes for the suit-and-tie crowd.
For Bybit, this partnership couldn’t have come at a better time. After their massive security breach, they needed something big to restore confidence. And let’s face it – partnering with a custody provider backed by Standard Chartered looks a lot better than promising to “do better next time.”
Whether this alliance will prevent future hacks remains to be seen, but it’s certainly a step in the right direction.
