Today, the cryptocurrency exchange Bybit has been in the spotlight due to a major security breach, marking one of the largest hacks in crypto history. Over $1.4 billion in various assets, including liquid-staked Ether and other ERC-20 tokens, were siphoned off by hackers believed to be the notorious North Korean Lazarus Group. Following this, Bybit’s total assets have declined by over $5 billion since the incident on February 21. Despite this setback, auditing firm Hacken has reassured users that Bybit’s reserves still exceed its liabilities, ensuring the full backing of user funds.
To combat this crisis, Bybit has announced a bounty program offering up to 10% of the stolen amount, roughly $140 million, as an incentive for white hat hackers who can aid in the recovery of the stolen funds. CEO Ben Zhou indicated that the company is taking proactive steps by collaborating with law enforcement and engaging with key figures in the crypto community, such as Ethereum co-founder Vitalik Buterin, to track and recover the assets.
The incident has prompted significant support from across the crypto industry, with major players such as Tether freezing 181,000 USDT linked to the stolen funds. While the hack led to network congestion and delays in processing withdrawals, Bybit has processed 70% of the pending transactions and assured users that operations continue despite the challenges.
In the aftermath of this breach, Bybit’s focus remains on resolving the issue while securing additional resources to ensure the platform’s stability. CEO Zhou has reiterated the safety of the exchange’s remaining wallets and promised ongoing updates as the situation develops.
