- A hacker, allegedly linked to North Korea’s Lazarus Group, stole over $1.4 billion in Ethereum from Bybit, now holding more ETH than Vitalik Buterin and the Ethereum Foundation.
- In response, Bybit has restored its asset reserves and launched a bounty program to recover the stolen funds.
The cryptocurrency world has been shaken by an unprecedented heist, with the hacker behind the Bybit breach now holding more Ethereum (ETH) than its very own creator, Vitalik Buterin, and even the Ethereum Foundation. This revelation underscores the massive impact of the exploit and raises concerns about security in the crypto space.
A Record-Breaking Crypto Heist
According to blockchain analytics firm Arkham Intelligence, the hacker, allegedly linked to the North Korean state-backed Lazarus Group, managed to steal over $1.4 billion worth of Ethereum from the cold wallet of cryptocurrency exchange Bybit. As of now, the hacker’s wallet holds a staggering 437,700 ETH, valued at approximately $1.2 billion, making up 0.36% of Ethereum’s total circulating supply.
In contrast, Ethereum co-founder Vitalik Buterin holds around 240,081 ETH, worth approximately $655.42 million, while the Ethereum Foundation possesses 223,147 ETH, valued at about $608 million. The scale of the hack and the amount of ETH held by the hacker highlights the gravity of the breach.
Market Turmoil and Bybit’s Response
The breach has is raising fears of a market downturn similar to the catastrophic FTX collapse of 2022. However, Bybit has taken swift action to address the crisis. The exchange announced that it has successfully closed the ETH deficit through a combination of loans, whale deposits, and direct ETH purchases. This has helped the platform restore a 1:1 backing of its client assets, ensuring customer funds remain secure.
Additionally, Bybit has introduced a recovery bounty program, offering up to 10% of the recovered funds as a reward for cybersecurity experts who assist in retrieving the stolen assets. This incentive aims to mobilize the broader security community to track and reclaim the lost funds.
What’s Next for Ethereum?
At the time of writing, Ethereum was trading at $2,720.97, marking a 3.60% drop in the last 24 hours. The news of the hack and the hacker’s large ETH holdings could contribute to further volatility in the market.
This massive breach serves as a stark reminder of the importance of robust security measures in the crypto industry. As authorities and cybersecurity experts work to trace and recover the stolen assets, the industry is once again reminded of the risks inherent in digital finance and the ongoing battle between security and cyber threats.
