Cryptocurrency platform Bybit faced one of the largest hacks but is taking swift action to recover and maintain stability.
Bybit Regaining Strength Bit by Bit
Bybit has quickly begun its recovery after losing $1.4 billion in cryptocurrency. Hackers exploited vulnerabilities in their cold wallet. Despite the scale of the attack, Bybit is restoring its assets step by step, backed by blockchain data.
How a Hack Turned into a Liquidity Crisis
Following the hack, Bybit faced a liquidity crisis, losing over a third of its assets. In an X Spaces session, CEO Ben Zhou explained that despite the loss of ETH, users primarily moved stablecoins like USDT off the platform. Further complications arose from Safe needing to temporarily disable certain functionalities.
The Ethereum Rollback Debate and Ongoing Developments
Following the attack, a debate ensued about the possibility of rolling back the Ethereum network to recover stolen assets. Some, like Arthur Hayes, suggested returning to 2016 practices, which would lead to complications with DeFi and NFT markets. Meanwhile, Bybit focused on rebuilding its internal infrastructure.
Despite the seriousness of the situation, Bybit has swiftly restored order and bolstered user confidence. This incident raises questions about the security of multisig wallets as a nominal standard in the cryptocurrency market.
