Crypto exchange giant Bybit has announced it will discontinue its NFT and Initial DEX Offering (IDO) services, as well as its Inscription marketplaces, in a move that reflects deepening troubles in the digital collectibles space. The decision follows a massive $1.5 billion security breach, reportedly orchestrated by North Korean hackers.
While Bybit cited its efforts to “streamline offerings,” the timing—just weeks after the high-profile hack—has sparked speculation that the closures are closely tied to the fallout from the incident.
According to Bybit’s official statement, the shutdown will take effect on April 8, 2025, at 16:00 UTC. After that, all related services will be inaccessible.
Users have been advised to manage their assets ahead of the shutdown. Bybit also recommended alternative platforms for trading NFTs—OpenSea, Blur, and Magic Eden for Ethereum-based assets, and Unisat and Magic Eden for inscription-based NFTs. IDO participants were urged to transfer airdropped tokens from their Bybit Web3 Cloud Wallets to personal wallets for safekeeping.
Fallout from the $1.5 Billion Security Breach
The decision to pull the plug on NFT and IDO services comes on the heels of one of the largest crypto hacks in recent history. In late February 2025, Bybit lost around $1.46 billion in digital assets to a cyberattack linked to North Korean hackers.
Despite reassurances from CEO Ben Zhou that the exchange is actively tracking the stolen assets, reports suggest much of the crypto has already been laundered through mixing services, making recovery nearly impossible.
In the aftermath, regulators increased scrutiny, and concerns grew around Bybit’s overall security infrastructure. Shutting down NFT and IDO operations appears to be a strategic move—not just to regain control, but to reduce compliance risks and protect liquidity in a challenging post-hack environment.
Industry-Wide NFT Downturn Continues
Bybit’s decision follows a growing list of NFT platforms that have shut down amid shrinking user interest and falling trading volumes.
Just recently, LG Electronics confirmed the closure of its LG Art Lab—an NFT marketplace launched in 2022 that allowed users to display and trade digital art via smart TVs. The platform will officially shut down on June 17, 2025, with NFTs returned to users’ wallets by the end of April.
Other major exits include:
- Kraken’s NFT marketplace, which shut down earlier in 2024.
- Nike’s RTFKT NFT venture, which folded in December 2023.
Trading volumes have plummeted, dropping below $100 million, compared to a record high of $3.24 billion in August 2021. In February 2025 alone, NFT trading saw a 60% drop from December levels.
Despite a modest rebound in late 2024, the market remains a shadow of its former self, and many platforms are struggling to stay afloat.
A Ray of Hope for NFTs?
In a rare win for the sector, the U.S. SEC recently closed its investigation into OpenSea, one of the largest NFT marketplaces. The probe, which began in August 2024, questioned whether OpenSea was operating as an unregistered securities exchange.
The closure of the case offers some relief and optimism for the NFT space, suggesting that clearer regulatory paths may emerge.
Still, for platforms like Bybit, the combination of market decline, security threats, and regulatory pressure has created too many headwinds to continue offering NFT services.
As the digital collectibles market continues to consolidate, it’s becoming clear that only the most resilient players will survive the turbulence.
