Bybit reveals security overhaul in response to $1.4B hack

2 days ago

Bybit, the world’s second-largest cryptocurrency speech by trading volume, has revealed a broad information overhaul pursuing its $1.4 cardinal hack successful February.

On Feb. 21, Bybit was hacked for implicit $1.4 billion successful liquid-staked Ether (STETH), Mantle Staked ETH (mETH) and different ERC-20 tokens, making it 1 of the largest information breaches successful crypto history.

To bolster defenses, Bybit has implemented a three-pronged information upgrade, targeting information audits, wallet fortifications and accusation information improvements, according to a June 4 announcement shared with Cointelegraph.

Within a period of the breach, the speech completed 9 information audits, conducted some by in-house specialists and autarkic outer experts, resulting successful the implementation of 50 caller information measures, the announcement said.

Cold wallet extortion and certifications

On the hardware front, Bybit said it has tightened acold wallet protocols, introduced a revamped operational information process that mandates afloat supervision by information experts passim the wallet process and adopted multiparty computation to further heighten wallet protection.

Additionally, hardware information modules were consolidated to supply higher levels of hardware security.

Bybit present holds ISO/IEC 27001 certification for accusation information hazard management. It said it besides encrypts each interior and lawsuit communications and information storage.

Liquidity betterment and Lazarus bounty programme

Despite the attack, Bybit has astir returned to pre-hack liquidity levels, and its LazarusBounty inaugural is continuing to hint the stolen funds. To date, implicit $2.3 cardinal successful bounty rewards person been distributed done the program.

Kaiko’s report connected Bybit’s liquidity revealed that Bitcoin (BTC) marketplace depth, wrong 1% of the price, had rebounded to a regular mean of $13 cardinal conscionable 30 days aft the hack.

Altcoin liquidity besides rebounded, though astatine a slower gait than Bitcoin. The marketplace extent for the apical 30 altcoins by marketplace capitalization has regained implicit 80% of its pre-hack levels.

The swift betterment is partially credited to Bybit’s Retail Price Improvement (RPI) orders, a diagnostic designed to pull organization liquidity. These specialized orders helped stabilize marketplace conditions erstwhile liquidity was astir strained.

As non-RPI liquidity temporarily diminished aft the hack, RPI orders played a important relation successful stabilizing trading conditions and enhancing pricing efficiency.

While infrastructure hardening was a focus, Bybit warned that hackers are progressively exploiting quality errors alternatively of protocol vulnerabilities.

There is simply a emergence successful “more blase attacks,” with hackers impersonating ample brands and protocols, a Bybit spokesperson told Cointelegraph, adding:

“While system-level intrusions stay a concern, attackers are progressively targeting the quality constituent arsenic the weakest nexus successful the information chain.”

The shifting onslaught vectors awesome that astute contracts and blockchain infrastructure are nary longer the weakest link, arsenic attackers progressively exploit “human behaviour alternatively than code,” Ronghui Gu, the co-founder of CertiK, told Cointelegraph.

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