Bybit Slashes Web3 Services After $1.5B Hack, Shuts Down NFT Marketplace

Staff Writer

Apr. 18, 2025

News

Cryptocurrency exchange Bybit has announced the discontinuation of several of its Web3 services, including its NFT marketplace, as part of a broader effort to streamline operations and refocus on core offerings. This move comes in the wake of a substantial $1.5 billion hack earlier this year, which has prompted the company to reassess its priorities and enhance security measures.

Bybit said the shutdowns reflect its commitment to adapting and improving services for Web3 users. (Image AI Generated)

Bybit revealed that it will be shutting down its Cloud Wallet and Keyless Wallet services by May 31, 2025. These wallets were designed to offer users custodial and non-custodial options for managing their digital assets. Additionally, the company will discontinue its NFT Marketplace, DEX Pro (a multi-chain decentralized exchange), Swap & Bridge (a cross-chain swap widget), and its Web3 Points loyalty program. The Inscription Marketplace, NFT Pro, Apex Pro derivatives DEX gateway, fiat-to-crypto on-ramp, and initial DEX offering (IDO) service are also slated for closure on April 28, 2025.

📢 Important Notice for Bybit Web3 Users

As part of ongoing product optimization, several Web3 services — including Cloud Wallet, Keyless Wallet, DEX Pro, Swap & Bridge, and NFT Marketplace — will be discontinued by May 31, 2025.

Please review the full announcement and take… pic.twitter.com/q8SRnedTmo
— Bybit Web3 (@Bybit_Web3) April 16, 2025

Bybit has advised users to transfer their assets from these services to their Bybit Funding Account or Seed Phrase Wallet before the respective shutdown dates to avoid any disruptions. An export feature will be made available to help users retrieve their private keys and continue using their wallets outside the platform.

The decision to scale back on Web3 services follows a massive security breach in February 2025, where Bybit lost approximately $1.5 billion in digital assets due to a hack. Despite the setback, Bybit has managed to recover a significant portion of the stolen funds and has implemented tighter security measures to protect its users.

Bybit stated that the discontinuation of these services is part of its commitment to the evolving on-chain ecosystem and delivering high-quality services to its Web3 users. The company emphasized that it is not entirely stepping away from Web3 but is instead optimizing its current product and service offerings to better align with long-term growth in the blockchain ecosystem.

Bybit's move mirrors a broader trend in the cryptocurrency industry, where several platforms are reevaluating their Web3 strategies amid declining interest in NFTs and other decentralized services. Earlier this month, NFT marketplace X2Y2 announced its closure, citing a significant drop in trading volumes and ongoing network issues.

Despite the scaling back of certain services, Bybit continues to explore new opportunities within the blockchain space. The company has recently integrated Bitcoin yield products from lending protocol Avalon, allowing users to earn yield from Bitcoin by arbitrating on its fixed-rate institutional borrowing layer.

As Bybit navigates this transitional period, the company remains focused on strengthening its core offerings and enhancing the overall user experience, signaling a strategic pivot towards more sustainable and secure blockchain solutions.