The cryptocurrency world was shaken after the massive Bybit hack, resulting in losses exceeding $1.5 billion. Bitrace, a crypto analysis platform, warns of potential large-scale freezes of OTC services.
Massive losses from Bybit hack
Bitrace termed the Bybit hack as the largest single theft in cryptocurrency history, surpassing previous notable hacks like those of Poly Network and Ronin Network. The attack is attributed to the North Korean hacker group known as Lazarus Group.
History of hacks and Lazarus Group
The Lazarus Group has been involved in several significant attacks on cryptocurrency exchanges, such as the incidents involving the Japanese exchange DMM and the Poloniex platform. These incidents led to the freezing of numerous addresses and wallets, significantly impacting the crypto industry.
Impact on OTC markets and user protection
As a result of these hacks, a large number of user accounts on major exchanges were subjected to risk control measures, impacting OTC merchants. Bitrace found that hackers often use both licensed and unlicensed platforms to launder stolen funds, leading to the freezing of numerous business addresses. Following the Bybit attack, the company initiated an investigation and has been working to trace and freeze stolen assets.
In light of recent events, participants in the cryptocurrency market must reassess their security strategies and risk management. Bitrace suggests that the crypto industry will face new challenges in the coming months related to cybersecurity threats.
