The recent hack of Bybit, resulting in a loss of $1.4 billion, has stirred a coordinated industry response to recover stolen assets and bolster security measures.
Efforts to Freeze Stolen Funds
In response to the Bybit hack, cryptocurrency exchanges have intensified efforts to track and freeze stolen funds. Nearly $42.85 million has been frozen across various platforms due to a coordinated industry effort. Decentralized exchange THORChain blacklisted addresses linked to the Lazarus Group, suspected in the attack. Coinex provided Bybit with critical insights, and ChangeNow froze 34 ETH tied to the breach. Additionally, stablecoin issuers Tether and Circle flagged hack-associated addresses, with Tether freezing 181,000 USDT.
Bybit Recovers Stolen Ethereum
Bybit CEO Ben Zhou confirmed the full recovery of the stolen Ethereum. Bybit bridged the $1.4 billion deficit using loans, whale deposits, and OTC deals. According to Lookonchain, the exchange linked wallets acquired 446,870 ETH to cover most of the lost assets. Despite the breach, Bybit's reserves remain robust, as proof-of-reserve auditor Hacken affirmed the full coverage of the exchange's liabilities.
Bybit's Security Overhaul
Bybit has announced substantial security upgrades to prevent future breaches. Additionally, the exchange has launched a Recovery Bounty Program offering a 10% reward for any recovered funds. Bybit also cautions users against phishing scams, emphasizing that it never asks for personal information.
Cybersecurity in the crypto industry is a growing concern. The Bybit hack highlights the need for platforms to enhance security measures and work collectively to combat cybercrime.
