Secure onchain UI would have prevented Bybit hack — Dfinity founder
The recent $1.4 billion Bybit hack has sent shockwaves through the cryptocurrency market, leaving investors and users wondering how such a breach could occur in the first place. According to Dominic Williams, the founder and chief scientist at the Dfinity Foundation, one of the key reasons for this security breach was the fact that decentralized projects were relying too heavily on centralized infrastructure.
"As an industry, we've lost our way," said Williams. "We started calling things onchain, which are built on Amazon Web Services, because they've got an associated token." This trend towards centralization has left many decentralized applications and blockchain projects vulnerable to security breaches. The Dfinity founder emphasized the importance of fully onchain development to prevent such vulnerabilities.
"Any code updates to a project or platform should be updated via a decentralized autonomous organization (DAO) and subject to community review rather than a single developer pushing code," said Williams. This approach ensures that all stakeholders are aware of any changes being made, reducing the risk of security breaches.
The Internet Computer Protocol hosts entire applications onchain through smart contracts, ensuring data integrity even during upgrades. This robust infrastructure is a far cry from the centralized platforms used by many decentralized projects today.
The Financial Impact of Centralized Security Breaches
Williams also highlighted the devastating financial impact of the Bybit hack on the crypto markets. The Lazarus Hacker group, which carried out the breach, is adept at laundering money and would likely siphon the stolen funds from the crypto markets into other sectors of the economy.
"This is ultimately one of the reasons that prices are crashing today," said Williams. "The total cryptocurrency market cap has taken a nosedive following the recent Bybit hack and macroeconomic uncertainty. According to data from CoinMarketCap, the total crypto market capitalization is currently $2.8 trillion — down from a high of roughly $3.62 trillion recorded in January 2025."
Crypto prices declined sharply following the Bybit hack, amidst macroeconomic uncertainty and eroding investor confidence in the nascent asset sector.
Institutional Stakers Take Notice
Bohdan Opryshko, Everstake's chief operating officer, also told Cointelegraph that the Bybit hack had prompted institutional stakers to migrate from centralized platforms over cybersecurity fears. This trend is a clear indication of the growing importance of onchain security and the need for decentralized infrastructure.
"The recent Bybit hack has shown us that cybersecurity is no longer a concern only for individual users," said Opryshko. "Institutional stakers are now taking notice, and it's time for decentralized platforms to step up their game."