Chainflip protocol is implementing an emergency software update in response to the $1.4 billion Bybit hack to prevent withdrawal of stolen funds.
Update for Fund Protection
Following the February 21 Bybit breach, Chainflip announced the '1.7.10' upgrade on February 24 aimed at blocking illicit transactions and protecting liquidity providers from exposure to stolen funds. Measures were swiftly taken to regain control over the interface after Bybit hack-related activity was detected on Saturday morning.
Collaborative Crime Reduction Efforts
Chainflip is closely working with other protocols and providers to prevent the transportation of funds through its decentralized crosschain services. The latest upgrade is designed to include enhanced broker-level screening tools available to all operators. This update allows for blocking of incoming Bitcoin transfers and returning rejected deposits to the user's specified refund address. These measures will now extend to Ethereum and all ERC-20 tokens.
Targeting Hack-Linked Wallets
Chainflip is taking proactive measures to block any crypto wallets linked to the Bybit hack or other major security incidents. The protocol also plans to introduce additional features for enhanced user protection. Chainflip highlights that the ecosystem has sufficient commercial incentives to undertake these steps, not just ethical considerations.
Chainflip's new upgrade aims to prevent the use of stolen funds following the significant Bybit breach. The protocol continues to work with industry players to strengthen security and protect its users.
