A major hacking incident affected the Bybit exchange with a loss exceeding $1.4 billion. With support from the crypto community, including Binance and Tether, the exchange continues its efforts to recover funds.
Bybit Hack: $1.4 Billion Loss
Last Friday, a major breach hit the cryptocurrency exchange Bybit, resulting in a loss exceeding $1.4 billion in ETH and stETH. The ongoing investigation reveals both weaknesses and strengths in the digital asset infrastructure. The likely perpetrator is the North Korean hacker group Lazarus, known for its tactics.
Joint Crypto Community Response
Following the hack, the crypto community quickly organized coordinated support for Bybit. The decentralized mETH Protocol promptly published investigation results, revealing the hackers' attempts to move funds. Thanks to built-in security features such as an 8-hour withdrawal delay, mETH prevented the full theft of its assets, recovering around 15,000 cmETH.
Tether CEO Paolo Ardoino announced that the company froze $181,000 in USDT linked to the stolen funds, collaborating with on-chain investigator ZachXBT. Binance provided Bybit with a bridge loan, enabling continued withdrawals without delays, while MEXC sent stETH to Bybit's cold wallet.
Bybit's Recovery and Future Steps
In recovery attempts, Bybit has offered a reward of up to $140 million for blockchain security experts who can help return stolen funds. Users remain assured as the company's efforts to recover stolen assets continue.
Bybit co-founder Ben Zhou emphasized the significance of the crypto community's support in overcoming the situation. Reports indicate that hackers are continually tracked, as some stolen funds are processed through Chainflip.io to exchange for Bitcoin. Bybit has appealed to crypto bridges to block further transactions and prevent the stolen funds from moving to other chains.
The hacking incident at Bybit highlighted vulnerabilities while also showcasing the support within the crypto community. Despite the losses, collaborative efforts demonstrate that the crypto space is becoming more resilient and capable of swiftly responding to crises.
