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Bybit Suffers Major Cyber Heist, Losing $1.5 Billion in Crypto
In a staggering breach that has sent shockwaves through the cryptocurrency community, Bybit, a prominent cryptocurrency exchange, reported a loss of $1.5 billion in digital assets. This incident is now considered the largest hack in the history of cryptocurrency.
The attack specifically targeted Bybit’s cold wallet—an offline wallet reputed for enhanced security—resulting in the unauthorized transfer of funds, predominantly in ether. Following the breach, the stolen assets were rapidly moved across numerous wallets and liquidated through various exchanges.
Ben Zhou, the CEO of Bybit, attempted to reassure users via social media, stating, “Please rest assured that all other cold wallets are secure. All withdrawals are NORMAL.”
Investigations by blockchain analysis firms, such as Elliptic and Arkham Intelligence, have traced the movement of the stolen cryptocurrency to various accounts, revealing a swift offloading process. This breach eclipses previous significant thefts in the cryptocurrency sector. For context, the $611 million stolen from Poly Network in 2021 and the $570 million hacked from Binance in 2022 now pale in comparison.
Further scrutiny by Elliptic analysts suggested a connection between the attack and North Korea’s Lazarus Group, a state-sponsored cybercrime unit notorious for stealing vast sums from the crypto industry. This group has a well-established history of exploiting security loopholes to fund activities for the North Korean regime, often using intricate laundering techniques to hide the trail of stolen funds.
Tom Robinson, chief scientist at Elliptic, elaborated on the situation, stating, “We’ve labelled the thief’s addresses in our software, to help prevent these funds from being cashed out through any other exchanges.”
In the immediate aftermath of the hack, Bybit experienced a frenetic wave of withdrawals as customers grew anxious about the exchange’s financial stability. However, Zhou later assured users that the outflows had begun to stabilize. To bolster confidence, he announced that Bybit had secured a bridge loan from undisclosed partners, aimed at covering unrecoverable losses and ensuring continued operations.
The Lazarus Group’s history in the cryptocurrency realm dates back to 2017 when they penetrated four South Korean exchanges, extracting $200 million in bitcoin. As authorities and cryptocurrency tracking agencies strive to uncover the whereabouts of the stolen assets, experts caution that large-scale cyber thefts remain an ongoing threat in the industry.
Robinson emphasized the need for tighter security measures, stating, “The more difficult we make it to benefit from crimes such as this, the less frequently they will take place.”
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