The Bybit hack, described by blockchain security firm Certik as the biggest crypto heist to date, saw all assets in the exchange’s cold wallets transferred to an unidentified address. Despite the massive breach, Bybit has stabilised operations with significant financial support from industry players.
After the attack, Bybit exchange raised a bridge loan equivalent to 80% of the value of the lost coins to ensure liquidity and maintain stable operations. Both the community and exchanges responded to the call for help from the exchange.
Industry Players Rally to Support Recovery After the Bybit Hack Causes $1.4 Billion Loss
Binance and Bitget deposited over 50,000 ETH into Bybit’s cold wallets, bypassing standard deposit addresses and suggesting direct coordination with Bybit.
However, Binance founder Changpeng Zhao clarified that Binance itself has not extended direct support. The transactions are from an anonymous entity transferring 11,800 ETH from Binance to Bybit to facilitate customer withdrawals.
Additionally, MEXC’s hot wallet transferred 12,652 stETH to Bybit, while Bitget provided an ETH loan of 64,452 tokens—representing a quarter of its total ETH holdings.
Bybit, one of the world’s largest cryptocurrency exchanges, has fallen victim to a major security breach, losing over $1.4 billion in Ether (ETH) after hackers exploited a vulnerability in its multi-signature wallets.
Bybit CEO Ben Zhou has pledged to use its reserve funds to cover all losses and protect users’ assets. The second-largest crypto exchange by trading volume also thanked partners, security teams, and the crypto community for their support.
Investigation Underway as Bybit Tracks Stolen Funds
Security researcher ZachXBT and analytics firm Arkham have linked the Bybit hack to the North Korea-backed Lazarus Group. ZachXBT’s findings include detailed transaction analysis, forensic charts, and associated wallet addresses, which have been shared with Bybit to aid in its investigation.
The Bybit CEO revealed that the exchange has processed an unprecedented volume of withdrawals since the breach, with more than 350,000 withdrawal requests, of which 99.994% have been successfully completed. As of now, approximately 2,100 withdrawal requests remain pending.
Bybit exchange has reported the incident to authorities and continues to collaborate with blockchain analytics firms to track and isolate the stolen funds. The exchange is working to prevent the hackers from liquidating the stolen ETH through legitimate markets while providing ongoing updates on the investigation.
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