- Bybit CEO Ben Zhou is taking aggressive steps to recover stolen funds from a recent hack, including a bounty program, law enforcement collaboration, and Ethereum Foundation consultations.
- Meanwhile, the crypto community debates the feasibility of rolling back the Ethereum blockchain, while industry leaders like Tether and Bitget take action to block compromised assets.
Bybit CEO Ben Zhou has vowed to leave no stone unturned in the effort to recover funds lost in the recent hack attributed to the notorious Lazarus Group. Speaking in a Feb. 22 X Spaces discussion, Zhou laid out Bybit’s multi-pronged approach, which includes launching a bounty program, collaborating with law enforcement, and consulting with the Ethereum Foundation to explore potential solutions.
A Controversial Ethereum Rollback?
One of the most debated topics surrounding the hack is the possibility of rolling back the Ethereum blockchain to undo the attack. Zhou acknowledged the complexity of such a move, stressing that it is not a unilateral decision but one that requires community consensus.
The crypto world has seen a similar scenario before—most notably in 2016 when Ethereum underwent a hard fork following the infamous DAO hack. That decision led to the emergence of Ethereum Classic. However, Ethereum core developer Tim Beiko has expressed skepticism about a rollback in this case. Beiko cautioned that reversing transactions post-hack is technically challenging and could have unintended consequences for the broader network.
How the Hack Happened
The security breach occurred when funds were moved from Bybit’s multisig wallet to a warm wallet. Though the transaction appeared legitimate, malicious code within the contract logic enabled hackers to siphon off the assets undetected. The attack has reignited discussions on security measures and the effectiveness of smart contract audits in preventing such breaches.
The Hunt for Stolen Assets
With approximately 489,395 ETH (worth around $1.3 billion) spread across 54 wallets, the Lazarus Group has reportedly been shifting funds in an attempt to obscure their origins. In response, Bybit has introduced a generous 10% bounty program, offering up to $140 million to white-hat hackers who can help retrieve the stolen crypto.
The industry has also rallied to support Bybit. Tether CEO Paolo Ardoino confirmed the freezing of 181,000 USDT linked to the hack, while Bitget CEO Gracy Chen announced that the exchange would block transactions associated with compromised wallets. Security experts continue to advise users on best practices, such as using multisignature wallets and hardware wallets to enhance security.
Moving Forward
Bybit’s swift action demonstrates the exchange’s commitment to protecting users and strengthening security measures in the wake of this massive breach. Whether or not a rollback happens, the incident underscores the ongoing need for robust security protocols and community collaboration in the ever-evolving world of crypto.
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