Bybit to Reward Security Experts Following Major Hack
In a significant development after losing over $1.4 billion in Ethereum and related tokens due to a sophisticated cyberattack, crypto exchange Bybit announced on Saturday that it will provide a bounty of 10% of any recovered funds—up to $140 million—to on-chain security experts who assist in retrieving the stolen assets.
Bybit co-founder and CEO Ben Zhou expressed gratitude for the overwhelming support the company received shortly after the incident, stating, “In the wake of this unfortunate event, we have been touched by the backing of industry experts and organizations. Together, we are facing a challenging chapter in the history of cryptocurrency, demonstrating our resilience against malicious actors.”
Zhou emphasized the company’s commitment to not only recover from this setback but also to enhance their security systems and liquidity while reaffirming their dedication to the crypto community. He launched the Recovery Bounty Program to officially recognize the contributions of those who offered assistance during this crisis.
The breach is now considered one of the largest in cryptocurrency history based on the value of the stolen assets. The attack occurred early Friday, with the hackers reportedly manipulating a transaction from Bybit’s multi-signature Ethereum cold storage wallet to its hot wallet, thereby obscuring the true destination of their funds.
While the investigation continues, Arkham Intelligence has pointed to a potential link between the hack and North Korea’s Lazarus group. On Friday, prominent blockchain analyst ZachXBT provided information suggesting that wallets involved in laundering the stolen funds from Bybit are connected to other attacks attributed to the Lazarus group, including recent hacks of Phemex and BingX.
Additionally, Paolo Ardoino, CEO of the well-known stablecoin issuer Tether, announced that his company had frozen around $181,000 in USDT connected to the stolen funds from Bybit, with assistance from ZachXBT. Ardoino commented on X, saying, “While it may not be a large amount, it’s a step forward in our commitment to monitor and combat such activities.”
Join our Channel...