In a historic move for the cryptocurrency industry, Bybit, the world’s second-largest cryptocurrency exchange by trading volume, is launching an astonishing bounty of up to $140 million aimed at recovering funds from one of the largest crypto heists ever reported. This initiative is set against the backdrop of over $1.4 billion in Ethereum and associated assets that were compromised in a sophisticated cyber attack.
Bybit’s pledge includes rewarding 10% of the recovered funds to cybersecurity experts and blockchain analysts who play a pivotal role in the recovery process. The exchange has expressed its commitment to not only recovering these stolen assets but also to restoring trust within the cryptocurrency community.
During a recent briefing, Ben Zhou, Bybit’s co-founder and CEO, highlighted the overwhelming response from industry professionals who have rallied to assist in investigating the breach. “Within 24 hours of the event, we were overwhelmed with support from some of the best people and organizations in the industry. We have shared in a dark moment of crypto history, and we’ve proven we are better than the malicious actors,” Zhou stated.
The hack is believed to have been orchestrated by North Korea’s notorious Lazarus Group, which has gained infamy for its involvement in many high-profile cybercriminal activities. On-chain investigator ZachXBT has been instrumental in tracing the illegal movements of the stolen funds, which were divided among various wallets and included staggering amounts of different tokens:
- 401,347 ETH worth $1.12 billion
- 90,376 stETH valued at $253.16 million
- 15,000 cmETH amounting to $44.13 million
- 8,000 mETH appraised at $23 million
This cyber attack has thrown into sharp relief the challenges that large crypto exchanges face regarding security. Investigators revealed that the hackers manipulated the signing interface of Bybit’s Ethereum multisig cold wallet during a routine transfer, leading to unauthorized access. As the crypto community unites to recover these assets, the urgent need for robust security measures is more evident than ever.
With this unprecedented bounty, Bybit not only aims to reclaim lost funds but also sets a precedent for the responsibility of all exchanges to maintain the integrity and reliability of their platforms. The outcome of this initiative will significantly influence the future of cybersecurity in the blockchain space, potentially restoring faith in the efficacy of preventative measures against such large-scale thefts.
