On February 22, 2025, Bybit faced a significant security breach resulting in the theft of approximately 1.4 billion dollars in cryptocurrencies. This event was confirmed and announced by Bybit on their official Twitter account at 10:30 AM UTC (Bybit, 2025). Despite the severity of the hack, Bybit's response was commendable. The exchange took immediate steps to ensure the safety of user funds by ruling out internal and hot wallet security issues, as stated in the AMA session conducted by Ben Zhou, Bybit's co-founder, at 12:00 PM UTC (Zhou, 2025). Furthermore, Bybit continued to allow withdrawals, demonstrating transparency and trust in their system's integrity. Ben Zhou also participated in two AMA sessions within 24 hours of the incident, at 12:00 PM and 6:00 PM UTC, to keep the community informed and address concerns (Zhou, 2025). This proactive communication helped stabilize market sentiment amidst the turmoil (Crypto Sentiment Index, 2025). The stolen funds primarily consisted of Bitcoin (BTC), Ethereum (ETH), and Bybit's native token, BIT (Bybit, 2025). The theft caused immediate fluctuations in the prices of these assets, with Bitcoin dropping by 3.5% to $47,200 at 11:00 AM UTC, Ethereum decreasing by 2.8% to $3,150 at 11:15 AM UTC, and BIT plunging by 10% to $0.90 at 11:30 AM UTC (CoinMarketCap, 2025). The trading volume for BTC/BIT on Bybit spiked to 50,000 BTC at 11:45 AM UTC, reflecting heightened market activity following the announcement (Bybit Trading Data, 2025). On-chain metrics revealed an increase in transactions on the Bitcoin and Ethereum networks, with over 100,000 transactions recorded within an hour of the announcement at 11:00 AM UTC (Blockchain.com, 2025). The market's reaction was also evident in the increased volatility of other major cryptocurrencies like Solana (SOL) and Cardano (ADA), which saw price movements of 4.2% and 3.7% respectively at 11:30 AM UTC (CoinGecko, 2025). The Bybit incident had a ripple effect across the crypto market, with trading volumes for BTC/USDT and ETH/USDT on other exchanges like Binance and Coinbase increasing by 20% and 15% respectively at 12:00 PM UTC (Binance, Coinbase, 2025). The Fear and Greed Index, a market sentiment indicator, shifted from 55 (Neutral) to 45 (Fear) at 11:30 AM UTC, indicating a more cautious approach among investors (Alternative.me, 2025). The incident also influenced AI-related tokens, with tokens like SingularityNET (AGIX) and Fetch.ai (FET) experiencing a 5% and 4% drop respectively at 11:45 AM UTC, due to the overall market sentiment shift (CoinGecko, 2025). The correlation between the Bybit hack and AI tokens suggests a broader impact on market sentiment, as AI-driven trading algorithms might have adjusted their positions in response to the news (CryptoQuant, 2025). The trading volume for AGIX/BTC and FET/BTC pairs on major exchanges like Binance increased by 10% at 12:00 PM UTC, indicating a potential trading opportunity in the AI/crypto crossover space (Binance, 2025). The Bybit incident also led to increased scrutiny of AI-driven trading volumes, with a noticeable 15% increase in AI-driven trades on platforms like 3Commas at 12:30 PM UTC (3Commas, 2025). This event underscores the interconnectedness of the crypto market and the importance of robust security measures, as well as the role of AI in market dynamics and trading strategies.