- Bybit has suffered a staggering $1.4 billion loss due to a rather audacious ETH hack, courtesy of the infamous Lazarus group.
- Now, the crypto community is clamoring for Vitalik Buterin to perform a miraculous rollback of the chain to rescue Bybit’s funds.
In a turn of events that could only be described as tragically comic, Bybit’s $1.4 billion Ethereum hack has been linked to the notorious Lazarus group. Naturally, this has sent investors into a withdrawal frenzy, as they fled the crypto exchange like it was on fire. 🔥
According to the ever-optimistic Bybit founder and CEO, Ben Zhou, the exchange has seen a record number of withdrawal requests, all of which were handled with the grace of a cat on a hot tin roof. 🐱👤
“Since the hack, Bybit has experienced the most number of withdraws that we have ever seen. We have had a total number of more than 350k withdrawal requests.”
But the pressing question remains: how on earth was the exchange compromised, and can it possibly retrieve the more than $1 billion that has vanished into thin air? 🕵️♂️
All the details
According to the exchange, the compromise was a sophisticated attack that tricked signers into unknowingly handing over control of its multi-signature (multi-sig) cold wallet. Quite the sleight of hand, wouldn’t you agree?
Approximately 400k ETH was siphoned from the compromised cold wallet to the attacker’s address, neatly divided into 10k ETH chunks and sent to various other addresses. The renowned on-chain detective, ZachXBT, has since linked these addresses to the North Korean Lazarus group. Quite the international incident brewing here! 🌍
According to CryptoQuant, following this debacle, Bybit’s ETH reserves plummeted from 443k ETH to a mere 39k ETH. Talk about a dramatic drop!
But wait, there’s more! The incident didn’t just rattle ETH investors. According to CryptoQuant analyst Dark Frost, a staggering 713 BTC was also withdrawn from the exchange as panic set in. 🏃♂️💨
“The shadow of FTX loomed over the market, triggering a wave of fear and prompting investors to accelerate withdrawals from Bybit. This was evident in BTC, with 713 BTC withdrawn at the same time.”
Will Bybit recover the funds?
Reports suggest that Bybit has received ETH loans from Bitget and Binance to alleviate the withdrawal pressures amid its dwindling ETH reserves. For instance, SpotOnChain reported that Bybit received over $170M in ETH loans. A veritable lifeline!
“Bybit has received $172.5M in loans from various exchanges/institutions to manage customer withdrawals in the past 7 hours, including 40,000 $ETH ($107M) from Bitget, 12,652 $stETH ($33.9M) from a #MEXC’s hot wallet, and 11,800 $ETH ($31.6M) from Binance’s hot wallet.”
However, it’s worth noting that this still leaves Bybit short of the $1.2 billion in stolen funds. Yet, Bybit’s CEO remains steadfast, claiming the exchange is solvent and can cover all user losses. A true optimist!
“Bybit is solvent even if this hack loss is not recovered; all of clients’ assets are 1 to 1 backed, we can cover the loss.”
But the burning question remains: Can Bybit recover the stolen funds? 🤔
According to ZachXBT,
“Partial recovery is more common (
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2025-02-22 11:11