4 months ago
Bybit CEO Ben Zhou confirmed that the speech restored Ethereum (ETH) reserves pursuing the recent $1.4 cardinal information breach.
In a Feb. 24 station connected X, Zhou announced that Bybit volition soon merchandise an updated proof-of-reserves study demonstrating that it present holds lawsuit assets 1:1.
He stated:
“Bybit has already afloat closed the ETH gap, caller audited POR study volition beryllium published precise soon to amusement that Bybit is again Back to 100% 1:1 connected lawsuit assets done merkle tree.”
Zhou’s connection confirmed a study from blockchain analytics steadfast Lookonchain. The steadfast stated that Bybit replenished its reserves done over-the-counter (OTC) purchases, whale deposits, and loans from large crypto platforms, including Binance, Bitget, and HTX.
Lookonchain said the embattled speech purchased 157,660 ETH worthy astir $437.8 cardinal from concern firms specified arsenic FalconX and Wintermute via OTC transactions.
Additionally, it acquired different $304 cardinal successful ETH from centralized and decentralized exchanges.
Fund betterment efforts
While the speech mightiness person closed its platform’s ETH gap, it has stepped up its betterment efforts by initiating a 10% bounty programme and freezing immoderate stolen funds.
On Feb. 22, the crypto trading level launched a bounty programme that encouraged ethical hackers and cybersecurity experts to assistance successful the betterment process.
The speech has pledged a reward of up to 10% of the recovered funds, perchance offering arsenic overmuch arsenic $140 cardinal if the afloat magnitude is reclaimed.
Zhou said:
“Bybit launched a bounty programme connected February 22, encouraging ethical hackers and cybersecurity experts to assistance successful the betterment process. The speech has pledged a reward of up to 10% of the recovered funds, perchance offering arsenic overmuch arsenic $140 cardinal if the afloat magnitude is reclaimed.”
Meanwhile, Bybit has besides collaborated with assorted crypto platforms to frost and retrieve stolen assets.
So far, the speech has successfully frozen astir $43 million done partnerships with entities specified arsenic Tether, ThorChain, Bitget, ChangeNow, Fixed Float, Avalanche, Circle, and CoinEx.
Bybit added:
“Through swift enactment and effectual coordination, the mETH Protocol squad successfully recovered 15,000 cmETH tokens worthy astir $43 million”
Laundering techniques
However, contempt these betterment efforts, the attackers person already begun laundering the stolen funds.
Blockchain forensics steadfast Elliptic noted that the laundering methods intimately lucifer techniques utilized by the Lazarus Group, a notorious cybercriminal organization.
According to the firm, the hackers instantly converted stolen tokens into ETH done decentralized exchanges (DEXs) to evade plus freezing. This determination helped bypass restrictions that issuers mightiness enforce connected circumstantial tokens.
Within 2 hours of the attack, funds were dispersed crossed 50 wallets, each holding astir 10,000 ETH. These wallets are present being systematically emptied, with astatine slightest 10% of the stolen assets already successful motion.
Elliptic continued that the attackers person besides started converting ETH into Bitcoin utilizing assorted trading services.
If past laundering patterns persist, the attackers volition apt employment mixers specified arsenic Tornado Cash to conceal their activities further. However, the sheer measurement of stolen assets whitethorn complicate this process.
Meanwhile, on-chain researcher ZachXBT besides discovered that the attackers attempted to launder funds utilizing memecoins connected Solana’s Pump.Fun platform.
The blockchain sleuth noted that 1 of the exploited wallets transferred 60 SOL to different code to make a token named QinShihuang, which saw implicit $26 cardinal successful trading volume.
The Solana Foundation and Pump.Fun responded by blocking and removing the token, preventing the attackers from cashing retired further. Bybit applauded the swift action, highlighting the value of community-driven information measures successful crypto.
The station Bybit restores Ethereum reserves pursuing $1.4B breach, launches $140M bounty program appeared archetypal connected CryptoSlate.
English (US) 