In an effort to thwart the illicit transfer of funds stolen during the recent Bybit hack, which stands as the largest crypto exchange breach to date, the crosschain trading protocol Chainflip has enacted an emergency software upgrade. This proactive measure, initiated on February 24, seeks to enhance broker-level scrutiny to block unauthorized transactions and shield liquidity providers from potential exposure to tainted funds. The swift reaction came after suspicious activity linked to the hack was detected on the platform.
Chainflip announced its latest upgrade, version 1.7.10, which is designed to fortify existing security measures. By upgrading broker-level screening tools, the protocol aims to preemptively stop any Bitcoin transfers deemed high-risk and intends to extend this capability to cover Ethereum and all ERC-20 tokens. Importantly, any deposits flagged as suspicious are planned to be refunded directly to the user’s specified address, further enhancing user safeguards.
The upgrade is expected to go live before or on February 27, following thorough internal testing and deployment. Chainflip is steadfast in its mission to self-regulate effectively, reinforcing a collective resolve within the crypto ecosystem to combat financial crime independently of external regulations. In a clear statement to the perpetrators, known as the Lazarus Group, Chainflip declared it is not a refuge for stolen assets, urging them to seek other avenues. The protocol plans to continue developing features aimed at bolstering user protection and making it increasingly difficult for bad actors to exploit vulnerabilities in the crypto space.
