The cryptocurrency exchange Bybit faced a significant hack, leading to discussions about security measures and support from other market participants.
Bybit’s Reserves Hold Strong Despite Massive Hack
On February 21, Bybit suffered a significant crypto theft, losing $1.4 billion in Ethereum and other ERC-20 tokens. The attack, attributed to the Lazarus Group, was one of the largest in crypto history. Despite the crisis, with total asset withdrawals exceeding $5.3 billion, Bybit assured users that its reserves still exceed liabilities. Independent Proof-of-Reserve auditor Hacken confirmed that user funds remained fully backed. Bybit CEO Ben Zhou emphasized that, despite the hack's severity, all platform functions remained intact, allowing over 350,000 withdrawal requests to be processed within 10 hours, maintaining operational stability.
Binance’s Immediate Support for Bybit After the Attack
In the wake of the breach, Binance was among the first to support Bybit, contributing 50,000 ETH to help stabilize Bybit’s reserves. Other exchanges, such as Bitget and HTX Group, also sent emergency funds. Binance founder Changpeng Zhao (CZ) praised Bybit CEO Ben Zhou for his transparency during the crisis and emphasized the importance of open communication to prevent panic and maintain the crypto community's trust. This solidarity showcased the industry's resilience against cyber threats.
Security Advice from Binance
Following the hack, Changpeng Zhao advised Bybit to consider halting withdrawals temporarily to assess vulnerabilities. He referenced Binance’s own experience in 2019, when it halted withdrawals for a week after a hack, leading to increased user confidence. However, Ben Zhou responded that a full withdrawal halt was unnecessary, explaining that the breach affected Bybit’s Ethereum cold wallet but didn’t compromise its internal systems. This sparked a debate on the best way to handle exchange security breaches, with CZ's cautious approach contrasting with Bybit's focus on operational continuity.
The Bybit hack highlighted the critical importance of security in the cryptocurrency industry and the significance of support from other platforms. The incident has sharpened discussions on cybersecurity, the necessity of proof-of-reserves, and the need for global cooperation to overcome such threats.
