Bybit, one of the world’s leading cryptocurrency exchanges, has announced it will discontinue its NFT, IDO, and Inscription marketplace services. The move follows a massive $1.5 billion security breach and reflects broader pressures within the digital collectibles sector.
While Bybit cited an effort to “streamline offerings,” the decision—coming just weeks after the breach reportedly linked to North Korean hackers—has prompted speculation that the hack played a major role in the shutdown.
According to the exchange, all NFT and IDO-related services will be deactivated on April 8, 2025, at 16:00 UTC. Users are encouraged to withdraw assets and prepare for the closure.
Bybit has recommended external platforms for continued NFT trading, including OpenSea, Blur, and Magic Eden for Ethereum NFTs, and Unisat and Magic Eden for inscription-based assets. IDO participants are urged to transfer airdropped tokens to personal wallets.
$1.5B Breach Triggers Strategic Retrenchment
The announcement comes in the wake of a major cyberattack in February 2025, in which Bybit reportedly lost $1.46 billion in digital assets. The exploit has been attributed to a state-sponsored hacking group linked to North Korea.
CEO Ben Zhou stated that the exchange is actively pursuing the stolen funds. However, blockchain tracking data suggests that much of the crypto has been laundered through mixing services, significantly complicating recovery efforts.
As regulatory pressure mounts and scrutiny over security protocols intensifies, the shutdown appears to be a strategic decision aimed at safeguarding liquidity and minimizing compliance risk.
NFT Sector Faces Ongoing Headwinds
Bybit’s exit from the NFT space adds to a growing list of platforms that have scaled back or closed services amid declining trading volumes and user interest.
LG Electronics recently announced the closure of LG Art Lab, its smart TV-based NFT platform, with operations winding down by June 17, 2025.
Other notable shutdowns include:
- Kraken’s NFT marketplace (early 2024)
- Nike’s RTFKT project (December 2023)
NFT trading volumes have plummeted—falling below $100 million, compared to a peak of $3.24 billion in August 2021. In February 2025 alone, volumes dropped 60% from December levels.
Regulatory Clarity Offers a Glimmer of Optimism
Despite the broader market downturn, the NFT industry received a rare win as the U.S. SEC officially closed its investigation into OpenSea. The probe had raised questions about whether OpenSea was operating as an unregistered securities exchange.
While this development offers some regulatory clarity, platforms like Bybit remain under pressure from a combination of security risks, market contraction, and compliance burdens.
As the industry consolidates, only the most resilient platforms are likely to remain active in the evolving NFT space.
