"Are My ByBit Funds Safe?" [Market Analysis]

Market commentary

ByBit was hacked for $1.4 billion in ETH, making it one of the largest crypto breaches in history. Despite the scale, ETH quickly rebounded, and market confidence remains strong, with ByBit's insolvency probability trading at just 4% on Polymarket. Algocrat AI’s systems initially shorted the market in response but exited with a small loss as no major sell-off occurred. Transparency from ByBit’s CEO has reassured investors, and for now, Algocrat AI continues to maintain funds on the exchange.

As you've probably heard, ByBit was hacked for approximately $1.4 billion worth of ETH yesterday.

This ranks among the largest hacks in history, crypto or otherwise.

Yet, despite the scale of the incident, ETH has barely reacted, and today we are seeing a strong reversal, recovering yesterday's losses,

Additionally, all available reports suggest that ByBit is successfully managing the situation.

As an indicator of confidence, the **Polymarket ByBit insolvency market** is currently trading at a 4% probability, continuously decreasing.

Is the market going to fall further?

Nobody can predict the future, but if this event were going to trigger a major sell-off, it likely would have already happened.

The day of the event presented a real risk, which is why Algocrat AI systems were shorting the market.

While they ultimately exited with a small loss, they were positioned to capitalize on a potential downturn.

However, no system wins every trade - nor should that be the goal. Risk management and strategic positioning remain the priority.

How has it handled?

ByBit CEO Ben Zhou demonstrated a masterclass in transparency.

He stayed up all night, actively updating his X (formerly Twitter) account with details about the hack:

And even shared his fitness tracker stats from the day and night following the breach,

This is exactly how such situations should be handled - openly and responsibly.

What are we doing with our ByBit funds?

We haven't moved them. While there remains a small chance of ByBit insolvency, we consider it negligible.

For now, we remain confident in ByBit’s ability to manage the aftermath and continue operations smoothly.

Best,
The Algocrat AI Team

Published on Feb 28, 2025

Share this article

Like what you see?

Join our Telegram group

Apply Now

Nature of Business Disclaimer

Algocrat.ai operates as a technology provider offering Software-as-a-Service (SaaS) solutions for automated trading strategies. We do not provide financial or investment advice, portfolio management, brokerage services, or act as a financial intermediary. Users retain full control over their trading accounts and funds, and all trading activities are conducted at their own discretion and risk.

Earnings & Risk Disclaimer

Trading digital currencies on margin has large potential rewards but also carries a high level of risk. You must be aware of the risks and be willing to accept them to invest in the digital currencies markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE BEING SHOWN.

NO REPRESENTATION IS BEING MADE THAT ANY PERSON WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Be warned that there is a possibility to lose real money if traded on a real money account, and the owners of algocrat.ai can NOT be held accountable for any losses that may occur including from any potential software bugs/glitches or malfunctions.

Algocrat.ai and its owners assume no responsibility for errors, inaccuracies or omissions in these materials. They do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Algocrat.ai and its owners shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.

We assume that you are legally permitted to purchase and use our products. Making sure that you are following the global and local laws and legislations is your responsibility. We cannot be held responsible for any damages or lawsuit against you due to such regulations.

All information on this website or any software and or guide purchased from this website is for educational purposes only and is not intended to provide financial advice. Any statements about profits or income, expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibility for your actions, trades, profit, or loss, and agree to hold the owner of algocrat.ai and any authorized distributors of this information harmless in any ways. All rights reserved. The use of this website and or its contents constitutes acceptance of our disclaimer.