How Bybit replenished its stolen assets
To compensate for the lost ETH, Bybit secured approximately 446,870 ETH through a mix of loans, large investor deposits, and direct purchases. The exchange acquired 157,660 ETH through over-the-counter transactions from crypto investment firms Galaxy Digital, FalconX, and Wintermute.
Additionally, the cryptocurrency exchange platform purchased another $304 million worth of ETH from centralized and decentralized exchanges, according to blockchain analytics firm Lookonchain.
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Bybit hack: How it happened
The breach occurred during a routine transfer between Bybit’s cold wallet and a warm wallet last week. Hackers exploited a vulnerability in the process, gaining control of the cold wallet and siphoning 401,000 ETH to an unknown address. This incident is considered one of the largest cryptocurrency thefts in history.In response, Bybit swiftly secured its platform and engaged blockchain forensic experts to track the stolen funds. The company also launched a bounty program, offering ethical hackers up to 10% of the recovered amount to assist in retrieval efforts. Despite the enormity of the hack, Zhou assured users that Bybit remains financially stable, with unaffected wallets and normal withdrawal operations.
Is North Korea’s Lazarus Group involved?
The hack has raised speculation about the involvement of North Korea’s Lazarus Group, a notorious state-backed hacking group. Blockchain analytics firms Arkham Intelligence and Elliptic have linked the breach to the group, although official confirmation is still pending. As per reports, the group uses hacking to fund North Korea’s nuclear program.
The stolen funds were initially sent to 50 different wallets, with each holding almost 10,000 tokens, according to Elliptic. By February 24, 14.9 percent of the stolen assets had been transferred.
Following the attack, Bybit processed over 350,000 withdrawal transactions as users reacted to the news. The exchange reassured customers that their assets remained secure and that it had the necessary reserves to cover losses.
As part of its commitment to transparency, Bybit plans to publish a new audited proof-of-reserves report, reaffirming that all client assets are fully backed. This initiative is aimed at restoring user confidence and demonstrating the platform’s dedication to security and accountability.
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FAQs:
- How did Bybit recover its stolen Ethereum after the security breach?
Bybit replenished its Ethereum reserves through a combination of loans, large investor deposits, and direct purchases, including over-the-counter transactions with crypto firms and additional purchases from exchanges. - What is the Lazarus Group?
It is a North-Korea backed hacking group that allegedly uses cybercrime to fund the country’s nuclear program.
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