In response to the recent $1.4 billion Bybit hack, Chainflip swiftly deployed a software update to prevent its platform from being used to launder stolen funds.
Closing the Door on Stolen Crypto
Chainflip stated that allowing illicit funds to flow through its protocol presents legal and ethical issues, while also putting liquidity providers at risk. The company quickly blocked access to its main interface after flows from the Bybit hack were detected. The update includes improved broker-level screening tools to block incoming Bitcoin, Ethereum, and all ERC-20 token transactions associated with illicit activity.
Strengthening Crypto’s Defense Against Crime
Chainflip’s proactive stance aligns with the industry's efforts to combat criminal activity in the crypto space. The protocol is working with Chainlink to ensure Bybit’s stolen funds are not laundered through decentralized cross-chain services. Chainflip is implementing additional security measures and blocking wallets linked to major breaches.
A Firm Stand Against Crypto Criminals
Chainflip emphasized that the crypto community doesn’t need regulators to act in such situations. The ecosystem takes steps for commercial and ethical reasons, ensuring protection against hackers, believed to be associated with the Lazarus group.
Chainflip's updates demonstrate a united front by crypto platforms against cybercriminals, focusing on enhancing user protection.
