The Bybit exchange hack, which resulted in the loss of $1.46 billion worth of staked Ethereum (ETH) and ERC-20 tokens, has been linked to the notorious North Korean hacker group, Lazarus. On-chain security investigator ZachXBT successfully identified the organization behind the attack, earning a $31,500 bounty from Arkham Intelligence.
Largest Exchange Hack in Crypto History
The Feb. 21 hack marked the largest crypto exchange breach ever recorded. Security platform Blockaid confirmed the staggering scale of the theft, which immediately drew reactions from the crypto community. The breach prompted widespread discussions on security, industry collaboration, and the need to curb fear, uncertainty, and doubt (FUD).
Following the hack, key figures and institutions in the crypto industry expressed their support for Bybit. Tron founder Justin Sun announced that the network was actively tracking the stolen funds, while OKX’s chief marketing officer, Haider Rafique, confirmed the exchange had deployed its security team to aid Bybit’s investigation. KuCoin also voiced its backing, emphasizing the need for cross-exchange collaboration to combat cybercrime and enhance security measures.
Addressing FUD and Market Panic
Amid growing concerns, industry leaders urged the community to remain calm. Coinbase executive Conor Grogan reassured users that Bybit was still processing withdrawals smoothly, holding over $20 billion in assets, with its cold wallets remaining untouched. Grogan dismissed fears of a collapse similar to FTX, stating, “If this were an FTX situation, I would be screaming it out. They will be fine.”
Security Experts Offer Advice
In light of the attack, security experts provided guidance on safeguarding digital assets. Yuga Labs’ vice president of blockchain, known as “Quit,” recommended multisignature security, hardware wallets, and transaction simulations. KuCoin reinforced the importance of two-factor authentication, strong passwords, and passkeys to prevent unauthorized access.
As the crypto industry grapples with the implications of this record-breaking hack, Bybit continues to restore user confidence while security teams work to mitigate future threats. The Lazarus Group’s involvement underscores the ongoing cybersecurity risks in the digital asset space, emphasizing the need for enhanced security and vigilance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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