Bybit recently endured a significant security breach, resulting in the theft of approximately $1.46 billion in Ethereum from its cold wallet. The exchange has asserted that it swiftly addressed the situation by replenishing lost funds, but questions about outstanding debts linger among experts in the field.
What Happened During the Bybit Hack?
The breach targeted Bybit’s Ethereum multi-signature cold wallet, as revealed by blockchain analytics firm Lookonchain. Hackers exploited vulnerabilities in the signature interface using phishing strategies, enabling them to extract $1.23 billion worth of ETH.
How Did Bybit Respond to the Crisis?
In response to the incident, CEO Ben Zhou took immediate action, utilizing user deposits, emergency loans, and direct ETH purchases to cover the losses. His proactive measures aimed to restore user confidence by returning all assets within two days.
Bybit’s recovery efforts involved securing funds from multiple sources, including:
- Private agreements contributing 157,660 ETH ($437.8 million).
- Transfers from other exchanges totaling 109,033 ETH ($304.1 million).
- Loans from significant investors amounting to 47,800 ETH ($127.5 million).
- Support from Bitget, providing 40,000 ETH ($106 million).
- Smaller private agreements accounting for 22,609 ETH ($61.8 million).
Despite these recovery efforts, some critics, including crypto expert Hermes Psychopomp, remain skeptical about Bybit’s claims of full compensation, highlighting ongoing debts. The hack also had a notable effect on Ethereum’s market price, as Bybit’s significant acquisitions temporarily countered a decline in value.
The incident has been linked to the Lazarus Group, which is believed to have ties to North Korean cybercriminal activities. Experts indicate that the hackers may be attempting to launder the stolen Ethereum through various crypto mixers.
