Last week, the crypto exchange Bybit’s suffered a staggering $1.4 billion theft in Ethereum, marking what is believed to be the largest crypto heist in history. In response, Bybit is offering a $140 million bounty to incentivize individuals and entities to help trace and freeze the stolen assets.
Bybit’s Bounty Strategy to Recover Stolen Crypto
Bybit’s CEO and co-founder, Ben Zhou, announced the bounty in a post on X, outlining the reward structure. According to Bybit’s official bounty page, participants can earn:
5% of the amount traced and frozen
5% to the entity responsible for freezing the funds
So far, five bounty hunters have successfully helped recover funds, leading to $4.23 million in bounty payouts.
Targeting North Korean-Linked Hackers
The Bybit bounty initiative appears to target Lazarus Group, a North Korean-backed hacking organization notorious for its crypto heists. Zhou made it clear that the goal is to eliminate bad actors in the industry, stating that Bybit plans to extend its bounty program to other victims of Lazarus in the future.
Cybersecurity experts and crypto security firms strongly suspect that the North Korean government is behind this attack. Reports from the United States, Japan, and South Korea indicate that North Korean hackers stole $650 million in cryptocurrency in 2024 alone, further strengthening this theory.
Investigating the Bybit Hack: SafeWallet’s Role
A forensic investigation into the breach was conducted by Sygnia Labs and Verichains, revealing that the attack stemmed from malicious code originating from SafeWallet, a crypto wallet platform.
Key findings from the investigation include:
A benign JavaScript file was replaced with a malicious version targeting Bybit’s Ethereum Multisig Cold Wallet.
Hackers gained access by breaching a developer’s device at SafeWallet.
With these insights, Bybit continues to work on tracking the stolen assets and identifying the hackers responsible for this record-breaking theft.
The Fight Against Crypto Cybercrime
The Bybit heist highlights the growing threat of state-sponsored cybercrime in the cryptocurrency industry. With hackers becoming increasingly sophisticated, crypto exchanges and Web3 companies must implement stronger security measures to prevent similar breaches in the future.
Bybit’s $140 million bounty program signals a proactive approach to cybercrime, offering a rare opportunity for ethical hackers and security researchers to take part in tracking down stolen crypto assets and combating illicit cyber activities.
Conclusion
The Bybit hack serves as a stark reminder of the evolving cybersecurity risks in the digital asset space. As hackers grow more sophisticated, crypto exchanges and investors must prioritize security measures to safeguard their assets. The $140 million bounty program could pave the way for stronger industry collaboration in tackling cybercrime, potentially leading to the recovery of stolen funds and the dismantling of criminal networks like Lazarus Group.
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