By Crypto exchange Bybit is shutting down its NFT and inscription marketplaces just weeks after losing nearly $1.5 billion in what is believed to be one of the largest crypto heists to date.
The company, which announced the closure on April 1, has also decided to sunset its initial DEX offering (IDO) products as part of what it called a move to “streamline our offerings.”
The changes are scheduled to take effect from April 8. After this date, users will no longer be able to access product pages for these marketplaces or take part in IDO-related activity through the platform.
The decision marks the end of Bybit’s ambitions in the non-fungible token space, following a year marked by growing scrutiny, reduced trading activity, and now, major security breaches.
Shutdown follows North Korea-linked hack
While the official announcement did not reference the breach directly, the timing of the shutdown closely follows a February 2025 hack where North Korean-linked hackers reportedly stole approximately $1.46 billion worth of digital assets from Bybit.
The incident, among the largest in crypto history, forced the exchange to bolster security and begin tracing transactions that had passed through obfuscation tools, including mixing services.
Despite reassurances from CEO Ben Zhou that efforts are underway to recover the lost assets, some of the stolen crypto remains untraceable.
The breach placed enormous pressure on the exchange’s Web3 infrastructure and exposed vulnerabilities in asset custody, particularly those linked to decentralised offerings like NFTs and IDOs.
The attack added to regulatory scrutiny and reduced user confidence in Bybit’s extended services.
It is within this broader context of post-hack damage control that the exchange has opted to withdraw from experimental segments of the crypto market.
Users must act before April 8
Bybit has informed its users to take action before the official closure date.
Those who have participated in initial DEX offerings and received airdropped tokens have been instructed to move their assets out of the Bybit Web3 Cloud Wallet.
The platform recommends using wallets secured by seed phrases or private keys to retain access.
Once the April 8 deadline passes, access to the NFT and Inscription product pages will be completely removed from the platform.
Users are urged to manage, transfer, or store their holdings securely in advance.
Bybit’s shutdown of these services mirrors trends across other platforms impacted by the downturn in the NFT market.
NFT marketplace X2Y2, for instance, also exited the space recently, citing plummeting trading volumes and shrinking liquidity.
Web3 shift after hack pressure
Bybit’s move marks a strategic pivot as the company reshuffles its priorities post-breach.
While the exchange remains one of the largest crypto trading platforms, it is now narrowing its scope by focusing on core products such as spot and derivatives trading.
The discontinuation of its NFT and IDO platforms aligns with a growing trend of exchanges refocusing on security, compliance, and capital preservation after an unstable year for decentralised assets.
The retreat from NFT and inscription support also underscores a broader recalibration across the Web3 ecosystem.
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